Expert: David - 3/14/2009

Question
we were discharged from our bankruptcy in oct. 2008. we have no credit cards or debt to speak of now. we need to buy a used car.....how difficult will this be. how embarrassing can the financial dept. make it for us. we are senior citizens.in our 70's. and are very apprehensive about doing this at this time....thank you nancy

Answer
Hi Nancy,

I would recommend these steps to have the best odds and least trouble.

1.  Register at www.financialscoringsolutions.com (This is a great way to jump your credit score within 30 days.)

2.  Decide what kind of car you want and what your willing to pay (I like to use Edmunds.com to decide on a reasonable price.  You have to know this or you'll end up regretting your purchase later.

3.  I would then do most of my work over the Internet and the phone.  You'll also want to wait till the last week of the month.  The Internet sales manager will likely be willing to sell a car at a small profit to increase his bonus.

4.  Ask to speak directly to the finance manager.  The sales person is a waste of time at this point. Get approved first.  Be very upfront and ask him the following questions before allowing them to run your credit:

* Are you able to finance me if I am very recently discharged from a chapter... BK

* When was the last time you got a bankrupt person approved/what rate.

* If you're not able to finance me who do you recommend I talk to.

5. You have to be willing to walk away.  I have walked out of the dealership at 11 PM after 4 hours of price haggling in the past with the finance manager telling me there was no way he could give the rate I wanted.  The next day he called me at work and gave me the rate(half of his original offer).

These are in my opinion good steps to avoid necessary embarrassment and still get a good deal.  You can absolutely get a car after BK.  There are several other things you should probably know about increasing your credit score after BK.  Many of my clients have over a 700 score within 12-18 months after BK by taking a few simple steps.  Purchasing a car can also help as long as you use only a bank, credit union or manufacturer.  Avoid finance companies at al costs.

Feel free to call me if you have questions.  I know how frustrating it can be to need credit and not be sure if you'll get it.

David McArthur
219-718-8566
financialscoring@sbcglobal.net