Bankruptcy and Vehicle Financing

afk_x · October 2002

Customer had a chapter 7 discharged almost exactly one year ago. This BK included a REPO. We got her approved for 0% for 60 months with GMAC with 3000 down.

Then again she has good income, the same job for 6 years, and has been perfect since her BK. Still I was surprised we got her done at zero with out more down.

johnannette · October 2002

hi i was wondering what car brand you work for. i will be looking for a car in about one year and have the same issues. thanks!

afk_x · October 2002

Saturn

tblazer503 · October 2002

like an ION, or S series? if so, then 3g can be almost a third of the car... Even on the L series or the VUE, its almost 15% if not more...
Just for some perspective...

afk_x · October 2002

That cost 21,000 before tax/license

Aprox 23,100 OTD

Is perspective needed? I was shocked we got her zero percent so easily. Usually that close to BK with a repo is special finance territory without massive (30-40%) down.

johnannette · October 2002

i am currently in a saturn lease 2001 l200 great car all payments on time lease is up i a year guest i will be looking at a vue. i am currently in bankrupcy and will be done soon.and starting the long road back.

isellhondas · October 2002

Well, it sounds like Saturn is REALLY reaching deep and approving everyone who applies if they bought that customer of yours.

I'm not surprised it's a VUE and not something a bit more practical. I guess some people never learn.

mazdaprofour · October 2002

My wife is job hunting and once she has located a job, I will get my car (some time next week hopefully). Will keep people posted.

jocko9 · October 2002

Zero percent financing on a new car with a BK just a year ago? Wow, stupid me for paying my bills on time like I thought you were supposed to do. Crap sign me up for a Chapter 7 then!!!

tblazer503 · October 2002

found out that AHFC will approve my fiancee for 4.99% 60mo on a new car... she has a recent collection on her credit and 2 30+ OD thats recent... (and her FICO is almost as good as mine) sheesh. Then again, she has no debt.

isellhondas · October 2002

Ah...don't you think it might be a good thing to hold off for awhile?

I mean, your wife might take a new job and decide she hates the place?

Or maybe she won't make it through her probationary period?

isellhondas · October 2002

What is a 2 30+OD?

Kirstie_H · October 2002

Two payments that are (or were) 30 or more days overdue, I'm guessing.

kirstie_h
Roving Host & Future Vehicles Host

fezo · October 2002

found out that AHFC will approve my fiancee for 4.99% 60mo on a new car... she has a recent collection on her credit and 2 30+ OD thats recent... (and her FICO is almost as good as mine) sheesh. Then again, she has no debt.

Now I know I shouldn't ask this. I know that somehow I'm missing something somewhere and am going to look like an idiot. I am sure I am making a major mistake in even posting this but I can't help myself.....

"found out that AHFC will approve my fiancee for 4.99% 60mo on a new car... she has a recent collection on her credit and 2 30+ OD thats recent... (and her FICO is almost as good as mine) sheesh. Then again, she has no debt."

Given the collection and teh 2 30+ OD's recent.... How the heck does she have no debt??!!?!

Win the lottery? Rich uncle die?

I am just not cut out for a career in finance...

tblazer503 · October 2002

All credit cards have been paid off w/in the last 2mos. 30+ OD stays on your credit for 7years too... as does 60+ and 90+. From what I've seen it hurt mine for about 3 years until it wasn't a big factor in my FICO drop. BTW, when I say that she has no debt, I'm comparing her $150 she owes on CC's to my $3000 I owe, plus my truck. OH, and the collection was paid off in cash 2 years ago, it showed up last month as a $50 collection.. gosh. what a headache.

BTW, yup 30+ is 30+ days overdue. Credit bureau tracks these.

fezo · October 2002

Now I had thought good vrdit moves stayed on for 7 and bad for 3. I obviously have it mixed. I have WAY too much credit debt and yet people keep ofering me enough open credit to buy Equador! (I'm holding out for Paraguay.) I guess that's what goes with paying my darn bills on time.

I seem to go through this in cycles. I learn and then I forget. But I keep paying the bills. They just LOVE that!

mazdaprofour · October 2002

I went to toyota mall of Georgia in atlanta, GA. Here is the story. I made the mistake of letting them run my credit first. They ran it and told me that they would work out the price. Well my sales guy just took me to the finance guy prior to us discussing the price of the car. The finance guy just blurts out 380.00 a month. I was like "we have not even discussed the price of the car yet. The finance guy was like "what did you want to discuss" I told him I wanted to negotiate the price of the car so he starts to tell me that they have only one corolla CE on the lot and that this other lady also wants it. He said that the price is sticker plus fees. I advised him that I did not want to pay sticker and he was like well it is only 20.00 more month. I told him that the deal was off and left. They got me approved at 21% which is what I was expecting anyway. Toyota really feels like they can just sell things at sticker due to the name or demand. This car is not a benz or lexus. I am going to have to stick with a 2002 honda accord or civic. At least they will work a deal out. We had to deal with toyota the same way on my wives celica.

cliffy1 · October 2002

You make some of the most bizarre statements. You are blaming Toyota because a dealership treated you poorly. I would also point out that I told you so. Dreks can't negotiate. They got you approved and you don't have other means of buying the Toyota. If you want a Toyota, they can set the price. Keep in mind that the CE only has about $1400 worth of mark-up anyway and they probably have a lender fee of $500 anyway. Yes, some banks do charge us to pick up the loan and we are prohibited form passing this on to the customer. That is why they will not negotiate.

gmanusmc · October 2002

And to think Mazda had this whole thing so well thought out...it was gonna be soooo easy.

Cliffy - what the heck's a "Drek"?

tblazer503 · October 2002

just to let ya know, roughly 14k financed for 60mo at 21% APR is $380... Considering your rough credit history, perhaps it would be better for you to get pre-approved on a carloan before shopping around... That way you know you have a loan, and you can let them try to beat it... at the very least, you will have a leg up on the deal..

manamal · October 2002

There is a good reason to keep one's credit clean! At that payment (and with good credit), you should be able to get a really well equiped Camry or Accord...

Right cliffy?

lemko · October 2002

My payments on a new 1994 Cadillac DeVille were only $389 a month! Of course I traded in a 1989 Mercury Grand Marquis LS in excellent condition and low miles and gave a decent down payment.

I agree that anybody with decent credit could've got the Camry for $380 a month. That is way too much for a Corolla. How much was it for an Echo? How about a Matrix?

abtseller · October 2002

a credit challenged buyer who is after a high-demand item. It doesn't matter if its a Toyota, Honda, Benz, or a Lexus. Lets analyze this a bit, as you should have been expecting it after the "education" you received here from the knowledgeable here on this board.

-That Corolla probably has less than $1000 markup in it between invoice and MSRP.
-The Corolla is a good seller at the moment, no reason to give them away. You're competing against another customer already on the "one" they have.
-There is probably a $250-1000 fee involved for the dealer. Yep, when your credit sucks, sometimes the dealer has to pay someone to loan you the money. Should the dealer absorb this cost because of your financial history?

No.

If you had negotiated price first, you would have been dissapointed to find out that the dealer probably wouldn't have sold you the car. You're going to end up with the same thing at Honda, I'm afraid. Your best bet would be to try and find your own financing, THEN you might have some negotiating room on the price. Oh? Wait, you can't find financing? Gee.

What happened to the $3-4000 you were going to put down to assure that you would never be upside down on the loan? Those payments sound like they're in "no money down" territory.

I'm not begrudging you for the BK, believe me, but your attitude is really something. Be thankful that you CAN buy a new car, take your lumps, and move on.

Ed

cliffy1 · October 2002

He can't get a pre-approved loan. Normal banks will not touch him because of his credit history. He will be forced to buy from a dealer that works with "second chance banks" if he wishes to buy a car on credit so soon after his BK. Every dealer he walks into will have the upper hand and can tell him the terms of the sale.

Drek = a credit challenged buyer.

jocko9 · October 2002

to the Mazda man. It's not like about a dozen posters on this forum didn't warn you.

lemko · October 2002

...but I'd put down a significant down payment and pay more than the monthly amount as to avoid the inevitable prospect of being upside down. Also, get the shortest terms possible. Sure, it might not be so great driving an Accent compared to a Corolla, but at least you'll have a new car with a warranty and have a means of reestablishing your credit.

abtseller · October 2002

if I had $3-4000, I'd pay cash for the newest or lowest mile Civic/ Corolla/ Prism/ whatever that I could afford, or perhaps find one that I could finance with 50% down for a short term.

not that this makes too much sense or anything

Ed

isellhondas · October 2002

You are whistling in the dark!

He has been given this same sage advise many many times.

abtseller · October 2002

beating a dead horse is fun. I actually sat down over a 2 day period and read all the posts on this topic.

Its very interesting and informative. If someone is going to be in this situation in the future, its a great read.

Ed

mazdaprofour · October 2002

Got a Honda Civic 2003 LX with GAP insurance included, tires for life, oil changes for life. Financed 14,300 after down payment and got 19% at 370.00 a month. Deal is done. Got the car and everything approved. I got a lot better deal compared to a strip down corolla. Car has power windows, cruise, power doors, cd, mudguards and automatic.

lyndasboys · October 2002

I have read all of these posts and I am new to this site. I need some direction though. Here it goes.. My husband and I filed CH.13 in 2/01.Our credit was bad and we wanted to pay off what we owed at a reasonable rate.credit counseling wanted us to pay more than what we were.We dismissed our case to sell our home and pay off all our debt this Feb (house prices jumped).Good idea gone bad!! Mortgage Co took a bundle in penalties and what they call misc fees.We were left with $7000.00 Now we are renters, owe $14500.00 on a 97 basic camry at $380.00 month,still have our original debt plus we still need another car. We were advised to file CH 7,return the camry and buy another car.
I own a family daycare and want to eventually build a large center.Being "nice" to parents that paid late took its toll on us.I now have great clients and a backbone!!I need a van for business purposes.
We qualify for the Xplan through my husbands work. I'm scared to death to return the camry and get shot down on another vehicle.I could keep the camry and save for a used van.I've just not been lucky with my choices now and want to get back on track as soon as possible.Should I return the camry? If I return it will I be able to find another? I don't like the idea of not paying what I owe, but the last 4 years have been hell.A person can only try so much before they throw in the towel.Should I return it and buy a used van?Keep it and buy a new ? HELP!!

emwolb · October 2002

i scrolled through your old posts, mazdaprofour, and that dog just won't hunt. edmunds tmv for that car is only 14,500. with taxes and everything, you should have been otd for around 15,000 or 15,500. that means you only put a small down payment. you're going to be upside down again quicker than you can whistle dixie. hope you like the car. you're stuck with it for a long time.

tblazer503 · October 2002

hmm... sounds like you may have been better off taking out a home equity loan... i believe the costs on those are about a grand or so... a little too late now, but hindsight is 20/20

You owe 14,5 on a 97 base Camry? talk about upside-down... just curious, but how did this come about?

Honestly, IMHO, you are waaayy over your head on the camry. If you cn live w/ one vehicle, my suggestion would be to trade in the camry for another vehicle.. What kind of van? MINIVAN? If so, perhaps you should look into a Sienna(Toyota) or Oddysey(the keep mad resale). Make sure you get GAP insurance on your new vehicle, either through the dealer, or through aftermarket parties. This may be the way to go because if you trade in your car, the dealer will have to pay off the car completely. Now, of course they will roll it into the purchase of a new car, but thats what the GAP is for(incase you total it in some type of insurance event ie. accident, flood, etc.) I would also consider getting an extended warranty for the term of the loan since you most likely won't be able to get out of the van anytime in the near future.... Here are some numbers to chew on...
1997 Toyota Camry CE Trade ~6,0(very clean)
2002 Toyota Sienna CE CD price 21,6 (new)
2003 Toyota Sienna CE CD price 22,6 (new)
With those numbers including GAP and EX WTTY with your $7g DP you will most likely be looking in the 500/mo for 60 month, 450/mo 72mo(ouch) 400/mo 84mo..(double ouch) It's a hit, but it may be your best start...
You may want to take your 7,0 and pay off your high interst loans/cards. Not being sure where you stand on any of this makes it difficult.

I'm sure some of the other members have some ideas...

mazdaprofour · October 2002

here is the exact numbers

14704.60(for car)
882.28 (sales tax)
499.00 (for GAP)
18.00 (title fee)
-------------------------
16103.88 total
-1800.00 downpaymnet
--------------------------
14303.88 financed
at 19.5% interest= 376.00 a month

I did check out edmunds and they do not have the option for adding gap insurance or things similar. Also tires and oil changes for life are damn good.

Cars direct has the car for 15044 plus all fees will come to more the same plus you also have to add GAP to the price which will make it even more.

isellhondas · October 2002

What kind of a phony deal is that anyway?

I'ld like to read the details of that one!

lyndasboys · October 2002

We included our camry in our Ch 13. The trustee paid out roughly $300.00 towards it.That was over a 14 month period.Give or take a little. That did not help.We are strongly considering walking away from the camry and purchasing a minivan-outright.Maybe a 96 or 97. The 7 grand we had is gone.We paid in advance on our rental so we could get in.Not too many landlords want a daycare in their home (and a dog).It is a huge liability.I also had to get workers comp insurance and daycare insurance to include the owner.The joys of being a business owner.
If I return the camry, how long until I could finance a new car?

lyndasboys · October 2002

I am thinking buying new in a year or so. Also, we would take the bus and use a rental when absolutely needed until we saved up for the used van.

abtseller · October 2002

Mazda, what happened to the $3-4000 you were going to put down? Is it not as easy to save as you thought?

Ed

emwolb · October 2002

mr. mazda, you doubted the salesmen in here when they told you you were going to have to either take their deal or leave it. you said you could still get a good deal. but you ended up paying 499 for gap insurance, which is high. also, you claim you got oil changes and tires for life included. where did you pay for it? or did they just throw it in on a 15,000 car (yeah, right)?

lemko · October 2002

...what is the average rate for gap insurance? Can you purchase it later or just at the time of the sale? Would your regular car insurance company provide it?

emwolb · October 2002

for 199-299, and that's on cars that cost a lot more. i would assume they increase the rates charged when the price of the car goes up. i'm guessing they baked a couple hundred extra on his deal.

mazdaprofour · October 2002

They gave me a book which covers oil changes at the dealership for the life of the car. The tires for the life of the car is also in writing. The only stipulation is that I have to take the car to them every 12,000 or so miles for inspection. I did not have to pay extra for any of this. And if you do the homework, you will find that 16,300 with gap insurance and the other stuff is a good deal for a 2003 LX with SRS airbags and all the features. I did not get scammed and am very happy with my deal. I will also refinance after a year to lower my payments. I was paying 430.00 a month on a car that I was upside down 10K on so I am very happy with my deal.

afk_x · October 2002

Sounds like you did pretty good. Take good care of that Civic and it will last a long long time.

I'm not so certain you will be able to refi in only a year but I suggest you try to pay at LEAST 480 a month. At the high rate most of the 380 is going to interest which is not going to help your refi efforts.

mazdaprofour · October 2002

Thanks afk_X

lokki · October 2002

Here's a Toyota Dealer who's offering this, but there are no details...

http://www.staugustinetoyota.com/

I'd be interested to know how this works

isellhondas · October 2002

Something isn't right. Maybe free tires but they charge 300.00 to mount and balance them?

grbeck · October 2002

The ad doesn't say what kind of tires. I seriously doubt the dealership lets the customer choose the tires that are put on the car. They are probably very cheap tires. Plus, I'll bet that the customer pays for mounting, balancing and front-end alignment.

Still, I never heard of this one before.

lemko · October 2002

"Those were a good set of second-hand retreads!"

Most likely those "free" tires are the cheap Pep Boys store-brand tires. I doubt they'll give you Dunlops, Pirellis, or Michelins. Maybe they're Firestone's seconds?

abtseller · October 2002

rotation/ balancing every so many miles, which is usually around $40 or so. How much is a new tire for a Civic? Around $40 or so.

Duh.

Ed

tblazer503 · October 2002

probably have to get them aligned/checked at least 1x a year. =o) that way they can't say its premature wear due to bad alignment and make you pay for it...

Bankruptcy and Vehicle Financing

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