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Advice or answers on financing while unemployed.

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Currently my fiancee and I are looking to buy a new 2018 Ford Edge. She just payed off her car last month (2011 Kia Rio) and are looking for something more comfortable for trips. We like driving to amusement parks to ride roller coasters. I have a 2005 Rav 4 that is not in the greatest of shape also. Our issue is this. She recently was layed off from her job about a month ago. So is collecting unemployment ($1100 a month) Since she recently payed off her car she only has about 250 dollars a month in bills. So was thinking that it would show that she still has the money to make a new car payment. She's looking for work right now but I've told her and we both agree that she should take her time and not just jump into the first job that has a paycheck and to find something she actually wants and for a good wage. I make plenty for us to live on my own and still be able to save money even if she didn't get unemployment. My problem is I'm at the end of chapter 7 just waiting for my discharge. I've already had my 341 meeting and my assest report has been completed. My discharge was supposed to be last month on the 19th but the trustee filed for an extension and my attorney tells me it's because the other trustee has retired and she took on all her cases so is behind. It's currently supposed to be discharged on the 19th of this month (October). 

 

So do we have any options? Are there any lenders that would give us a loan for a new Ford Edge with her on unemployment? Or if I cosigned with her just for the income even tho I'm in BK7? We have 10% down to put on car and plan on trading her car in as well altho it's not worth much according to KBB (Maybe 2k if were lucky). Her credit scores are in the 600-650s because there is a collection we just found out about for 100 bucks from some medical bloodwork that she had done. Which she had insurance for and was paid by them they said. So were working on getting that off. That was just in september that it went to her report and we knew nothing about it. So being to recent it hit her score hard. Were working on getting that taken off but we've found a great deal on a new Edge (Even tho it's 4 hours away) and were wanting to try to get it. Other then that she had a collection in 2013 for 500 bucks on a credit card. 

 

Like I said she just paid off her last car a month ago and this was her 3rd car payment she has completed with no lates ever on a car payment from all 3 car loans. The issue is her employment. Even tho she gets enough extra on unemployment to cover the car payment (And I'm covering all the payments anyways) Just wodnering what people think is possible if anything.

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to be honest, I suggest driving the Korean SUV until the wheels fall off. Enjoy not having a payment and use the time to save up money toward your next vehicle. great deals on american made SUVs are not going anywhere.

 

chances are she can be approved for financing as unemployment can be disclosed as an income source. but, especially since you indicate she is going to be picky on replacing her income with a new job, I'm not sure it is wise (financially speaking) to go into debt just to be more "comfortable."

 

Let me be nosy and ask if you two have any other debt? You should have zero unless you have student loans. If she has any, especially high interest credit card debt, being car-payment free is a great time to pay off other debts.

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The 250 dollars I mentioned that she pays a month is our only debt. I have my mortgage that I kept after BK7 which is 1000 a month. I make 6500 before taxes monthly. With her on unemployment were currently saving about 2500 a month after living, entertainment, and bills. We just didn't want to miss out on this deal that was 5k below any other car dealer we had seen. But saving more might be what we end up doing if thats the best thing. 

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Agree with Hegemony. Drive the Kia until the wheels fall off and if you're so up on a car payment, put what you would pay in a car payment into savings and when the wheels do fall off the Kia then pay cash for a big chunk of the new vehicle. Cash makes for nice LTV and a nice LTV makes lenders more forgiving on BK's

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Agree with the above. Also use the Why hat method to remove her medical debt. That will help her score and get her a better rate in the future

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5 hours ago, James3 said:

Currently my fiancee and I are looking to buy a new 2018 Ford Edge. She just payed off her car last month (2011 Kia Rio) and are looking for something more comfortable for trips. We like driving to amusement parks to ride roller coasters.

In our house this wouldn't even approach justification to buy a new car, and we are in a position to write a check for any car we want.

 

Try to get out of the car payment cycle.  Every time you trade in a car you either delay retirement or diminish what you will be able to spend when you're no longer working. 

 

If retirement seems too far away to think about, consider that current decisions will also still impact interim goals.  

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If she were to truthfully complete a credit application and state her source of monthly funds (employment) is unemployment insurance, I believe she would be rejected.  The unemployment insurance I don't think would last the term of the loan generally speaking.

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18 hours ago, James3 said:

We have 10% down

 

14 hours ago, James3 said:

were currently saving about 2500 a month

This doesn't seem logical for a $30,000 vehicle.

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On 10/3/2018 at 11:47 AM, James3 said:

She just payed off her car last month (2011 Kia Rio)

Wait .... something just occurred to me ... was this the original vehicle loan on this car? a SEVEN YEAR car loan? On a Kia? Please tell us she bought it used.

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Sorry yes she bought It used, it was a 5 year loan paid off in 4 years. And the saving 2500 a month I meant that after all of our bills are paid and food and money we spend going out to eat and entertainment ( Amusement parks ) we are putting away 2500 a month into savings.

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We all know exactly what you meant.

 

How many months have you been putting $2,500 a month into savings?  I'm guessing........1 month?

 

I'm curious as to how you qualified for Chapter 7 bankruptcy with that kind of disposable income, but it's not relevant to your question.

 

Try this math:  $2,500 x 12 = $30,000

 

Then you could just about pay cash for the new car.

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Two cars that are paid off and still work-- most people would be happy with that.

 

Someone with an open BK won't even be considered by mainstream lenders; at least wait until discharge.

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What did James3 end up doing? bcp this sound all crazy too me. 2 cars that do drive, Ch7 but then still want to finance another car just because you can afford. Seem like they have enough cash to save and buy new car without a loan.

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6 hours ago, fixmeup said:

What did James3 end up doing? bcp this sound all crazy too me. 2 cars that do drive, Ch7 but then still want to finance another car just because you can afford. Seem like they have enough cash to save and buy new car without a loan.

Some people come here looking for acclimation of bad financial decisions.

Edited by IndyPoolPlayer

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It is not far fetched that a 7 year old car and a 13 year old car could both be at the point where the cost to keep them driving makes purchasing a newer car more cost effective.  I was driving a 2007 model car in 2016 when the game of musical warning lights and the associated costs began to play out.  

 

IMO, the issue with the OP is too much of the unknown playing into the fiancé's finances and his bk at the time to make a $30K financial commitment.   I would have suggested looking at a 1-3 year low mileage used alternative after consulting the bk attorney.   

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