Post bk

What is the name of your state?What is the name of your state? Missouri.

My ch. 7 was recently discharged. I'm desperately in need of a car and have been doing what research I can. I have been deluged with letters from dealerships touting their ability to "help me rebuild my credit." I checked out a few and seems like none want to budge from an apr of 20 and above. Naturally I have been turned down by several banks and other lending institutions and don't really have the option to secure financing before going to a dealership.

I do realize that I'm going to be hosed when it comes to financing, but I was wondering if anyone could provide me any advice on what would be a good rate. Post bk, I have absolutely no debt, a great paying job, doing the small credit card thing and living well within my means, if not lower than (I'm actually finding life without credit cards much more enjoyable, but that is another story). But, I do need a car.

When it comes to used cars, the impression and feedback I've gotten is that the rate will definitely be higher with a used car as opposed to new. So, my delimma is this, should I just go with a used car and hope for a better rate, or try at least to get a new car also hoping for a decent rate? I have been leaning towards getting something new with the thought that after a year or so, I will be able to refinance to get a lower rate. My thinking is that a newer car will be more acceptable to lending institution for refinancing.

What is a normal rate to expect? From my research, seems that something in the neighborhood of 15 to 17 is not too unreasonable; but 20 and above seems usurious. I can honestly afford a lot of car, but I don't want to be taken advantage of. I have indication that Ford is a bit more bk friendly, but does that just mean that they see me coming before I actually get there.

And, what is the best way to approach a dealership in such a situation? Should I just be straight-forward and tell about the recent discharge, or hide that until crunch time after the test drive?

Any advice?

p.s. GO CARDS!!!

Just went through the exact situation. Discharged in May. Bought a car in August. Ended up with a loan @ 16 percent. Really no other choice. Will definately refi after 12 payments.

Believe it or not, I found that I could NOT get an older car because the finance companies want the vehicle to have decent value/warranty should you have "problems" again. They won't touch older cars. Just covering their own butts.

Gaffney, thanks so much for the reply. Guess I'll just have to bite the bullet on this one. Such is life...