Car loans after bankruptcy?

Sunday, February 1st, 2009 at 08:59

Lorien asked:

I have a bankruptcy just discharged in October. I had my car totalled last week and I need a new/used car. I found out today from two dealers that I cannot lease a new vehicle but I am approved for $11000 with 13-15% interest for 60 months. Should I go for it and finance something for 60 months. I can afford $200 - $250 a month with $1000 - $3000 down. They told me also that I have to finance something newer than a 2002 with low miles. So I cannot pick a 2001 car with 80,000 miles on it. Weird. So what is the best thing to Viagra do then? Is this interest rate reasonable?

Reply:

15% interest is going to be hard to beat.
The reason why you can't get anything old with high miles is because of your track record. The bank is not going to stick it's neck out on something that may need repairs soon after getting the loan. The way they see it, if you are faced with a $500 repair bill one month you will pay it instead of the car payment. Something with lower miles will have less chance of problems.

Finance your car here onsite if you need help buying one of these beauties :)