So, I posted on here a while back about pros and cons of filing for Bankruptcy. We ended up filing, and we just rec'vd our discharge. For us, it was a great choice. All the debt we cleared was old, and we did get the fresh start we were hoping for!
For the last 6 months or so we have paid everything on time. We have one credit card that we use every month and pay off to a ZERO balance every month. All our utilities are paid on time.
We own the car we have now. Its a 01 Odyssey with 221,000 miles. It runs great, and we put a new transmission in it about 6 months ago. I know its a Honda, but with the high mileage, I keep thinking we should trade it in before it dies on us and therefore would have no value. Its our only car, so if it goes, we'll be in trouble.
I feel like the longer we wait out of bankruptcy the better interest rate we will get when we decide to finance a car. On the other hand, maybe getting a car sooner will help rebuild our credit faster. Any advice about financing a car from others who filed for bankruptcy?
Thanks, Moms!
Thanks for advice. I love the idea of socking away a "car payment" into savings every month. Even if the van does die in 6 months or so we'll have more in savings than we would have had in a trade in. Excellent advice.
Is there a possibility of saving all or most of the money you need for a car? Also, if you buy a used newer car, you'll get a good car for a better price and you won't lose as much value. Odyssey's are great vehicles! Hopefully, you'll get more miles out of it. Good luck!
Read Financial Peace by Dave Ramsey and pay cash for your next car. Cut up your credit card and use a debit card. Then you don't have to pay any interest, and hopefully you won't end up in the same boat as before.
I've not filed bankruptcy. My best friend did - and as soon as it was discharged it seems like they were getting credit card offers in the mail left and right...thank God they didn't take them.
You would be best saving your money and putting a better down payment down then going now...you've just spent at least $3K on it for the transmission...so you should be good for a while if you continue to do regular maintenance on it.
If you belong to a credit union - you might be able to get a loan through them but really - take any money that you would be paying for a car payment and putting it into savings - then you have your down payment...
I personally wouldn't go looking for more debt when all of my debt was just wiped off my record in the past year...that's me...i wouldn't be in a hurry to "rebuild" my credit either...we are a cash only family and it makes life a heck of a lot easier...Again - I would NOT get a loan...take the money you THINK you would be paying for a car payment into a savings account. If you can't afford that - then you can't afford the car. do it for at least 6 months. if you don't touch that money in six months and you put $600 a month into it - you will have $3600 in six months...you MIGHT get a $1500 on your Odyssey - I don't know - but I wouldn't go looking for trouble.
My husband was unable to finance a car after his bankruptcy, which was before we met. The first car that he financed, I was the primary on the loan and he was secondary because the bankruptcy was still on his record. You may have to line up a co-signor or look for alternate means of financing a car. Our credit is currently poor (but by no means awful - it's actually average) due to a mortgage mess from 2009 and even with two incomes and all payments on all debts on time for 2 years we couldn't get a car loan from my credit union, through which I have financed at least 5 cars over 13 years with never a late payment. We had to borrow from my 401(k) to buy our current vehicle.
You would probably have better luck securing a loan if you have a pretty hefty down payment available.
We filed bankruptcy about 7 years ago, and in that time, we've financed 3 cars, with each one having a better rate than the previous one. It won't hurt to at least check into it. We also got an FHA mortgage.
I would not take out a loan for a car, bankruptcy or not.
Go to the library and get Dave Ramsey's book "Total Money Makeover" and learn how to avoid financing a car ever again.
Car loans are such wealth drains, i.e., traps.
My 2004 Odyssey is still going strong too - 100,000+ miles. We could afford to get a new car but we won't. Our other car is my MIL's lease, that she can no longer drive. After that goes back we're going to pay cash for something.
Good luck - I highly advise that book.
PS: As Dave says (quoting the Bible): "The debtor is SLAVE to the lender."
My husband could not get a car loan with a decent rate without a co-signer after his bankruptcy. So we waited until our van died, we kept up maintenance but it was so old and worn that we only got $300 for it from a junk yard! LOL It was worth waiting, we were in a better position to buy at that point.
Honda is a great make of a vehicle. As long as you take care of it, oil change, fluid flush, breaks, tuneups etc., it will last you a very long time...and WOW...I just rechecked your mileage and holy cow! Looks like that honda has taken real good care of you all. :-)
The interest rate will be really high if you finance a car right now. Just about 19% or higher. That is a lot.
If your honda is still running good, keep it. Yes getting another vehicle right now will help rebuild your credit...and if you choose to get another one, just make sure you'll be able to make the payment and still stay afloat with this economy the way it is.
Glad you all are back on your feet. :-) We're in the process of bankruptcy ourselves. My hubby lost his job back in January, and we have had several interviews, and no bites. Oye...it's a rough ride for sure.
