How To Lower Your Car Payments

home-buyerHey Cool Car Fans,

Many times people will decide that they want to purchase a home, but their debt to income ratio is too high.  They may have a great job and the income and they have even saved for a down payment, but their car payments are preventing them from being able to purchase a home.

There are some creative ways to lower a person’s car payments that can really help with their debt to income ratio and allow them to qualify for a home loan.  I have a good friend and client, who is a mortgage banker and he will routinely call me throughout the year and ask me to assist one of his clients to qualify for a mortgage by lowering their car payments.  There are a number of ways that we can do this to make it happen for people and allow them to take advantage of a home mortgage situation.

2012qx56The first thing that we can do is refinance the person’s current vehicle and lease it back to them that can sometimes really lower their payments.  I recently had a client who was able to lower their payment on a 2012 Infiniti QX56 from over $800 a month down to $422 a month by leasing the vehicle, instead of continuing with her current payment structure.  Being able to lower her payments really helped her with cash flow based on her financial situation.

Many people have lifestyle changes and they don’t look at this as an option.  For example, if a person can lease a vehicle and have a lower payment than they have money available for qualifying for a home or funding an investment grade cash value life insurance policy.  This can be a great strategy that will allow someone to put money away that they can use for other funding options.

lifeinsurancepolicyAs a licensed life insurance agent in the State of Colorado I can show people how to leverage the benefits of dividend paying whole life insurance from a mutual life insurance company.  One of the tremendous benefits of these products is that a person can invest in a policy, have a death benefit and build cash value to borrow against in the future for opportunities like financing their own vehicles without credit and at really low interest rates.  There are huge benefits to this strategy that I won’t go into detail here, but it’s an example of how if you can lower your car payments you can have other financial opportunities available to you.

I’ve had a number of people who have refinanced their vehicles by either financing or leasing them to lower their payments, but another option is to trade out of the current vehicle and into another vehicle.  This is another strategy that many people don’t think about and they miss out on a way better financial opportunity.

400For example, many people are told by the television and radio “financial gurus” never to lease a vehicle, but what if you have an opportunity to buy a home at a great price?  Let’s hypothetically say that you have a $600 a month car payment that is holding you back from qualifying for a home, but you only need $200 more a month in cash flow and you would qualify for the purchase.  What if you could get out of it, lease something similar in a different brand and have a $400 a month payment for three years with miles that would work for you?  That’s $2,400 a year, which over three years is $7,200 in savings.  This is money you can use for other opportunities or save for the future.

Let’s assume that you are $4,000 upside down though to get out of your $600 a month payment?  That is still $3,200 in savings over three years with much better cash flow, when you subtract the $4,000 from the $7,200.  This is what many people don’t think about.  What if you are able to purchase a home for $10,000 less because of the market in your particular area and you can now do that because of your improved cash flow?   Suddenly, that $4,000 in negative equity on the vehicle that you rolled into a lease makes perfect financial sense because you immediately saved $10,000 on the home purchase.  Over three years, the home you purchased is probably going to appreciate in value as well.

“Typically in the U.S., property prices rise 3.5 percent per year, Humphries says, and since about the middle of 2013, they’ve gone up 6 to 8 percent a year.” – Source: USNews.com

“The median home value in the United States is $189,400. United States home values have gone up 5.5% over the past year and Zillow predicts they will rise 2.9% within the next year.” – Source: Zillow.com

This is just one example of how it can make sense to lower your payments using a lease, trading out of a vehicle and purchasing or leasing a different vehicle or even doing a refinance for better cash flow.  As I mentioned already, I also show people how to use this type of a strategy to put the additional savings into an investment grade cash value life insurance product that also goes on the asset side of a balance sheet.  This can allow a person to put money away over three to five years and begin building a stronger financial foundation for themselves.

The bottom line is that sometimes it can make more sense to finance or lease a vehicle and lower payments depending on a person’s unique financial situation.  Everyone’s situation is different and people have life changes, including divorce, health concerns, retirement, credit challenges or opportunities that they want to take advantage of, so I have found that there is rarely a one-size fits all solution.

It’s honestly never a cut and dry statement such as “you should never lease a vehicle” or “you should never refinance a vehicle” or “you should never buy whole life insurance” like so many of the “financial gurus” like to claim.  Sometimes it makes perfect sense.  I’ve seen many people really improve their financial situation by restructuring their automobiles and the way that they go about financing or leasing them.

________________________________________________________________________

John Boyd

Auto Consultant – John Boyd: The Cool Car Guy

John is an auto consultant with his license at a car dealership in Denver, Colorado. He can help you save time and money on any make or model, new or used, lease or purchase – nationwide! Call or email John about your next vehicle! jboyd@coolcarguy.com or Twitter @coolcarguy

2008 BMW M5 Sedan – Consignment

08bmw_m5-1Hey Cool Car Fans,

Recently, I listed a really cool 2008 BMW M5 sedan on consignment for a client and I decided to feature it here at CoolCarGuy.com and put some photos of it online.  I had to feature this vehicle because most car enthusiasts are familiar with this vehicle and it’s 500hp V10 power plant under the hood. This is a really cool vehicle and it’s pretty much stock from BMW other than the exhaust that he did an upgrade on.

The Exhaust

The exhaust was done at BDM Performance Exhaust and my client had them put Magna flows on and change out the tips to single oval shapes to match the contour the rear bumper, which gives is a slick look from the 08bmw_m5-9backend. 

Year: 2008
Make: BMW
Model: M5
Trim: Sedan
Mileage: 50,041
Stock #: JB8762Xc
VIN #: WBSNB93578CX08762
Trans: Automatic
Color: White
Interior: Leather
Vehicle Type: Sedan
State: CO
Drive Train: RWD
Engine: 5.0L V10 DOHC 40V

08bmw_m5-2The 2008 BMW M5 had an original base MSRP of $86,675 according to Edmunds.com and a 1/4 mile track time of 12.8 seconds at 115.1 mph and it took 4.5 seconds to get from 0 to 60 mph.  As I mentioned it has 500hop and 383 ft lb of torque.  This bad boy will get up and go, but the M5 doesn’t really feel like a fast car, which is the beauty of it.  It’s more of a sleeper where people believe it’s just another 5 series sedan, but it’s actually a monster on the highway.

The E60 M5 was the world’s first production sedan to feature a V10 gasoline engine.  At the time the M5 was released to the public it was the fastest 4-door production sedan in the world, which you would probably suspect it to be.  It had a five year run from 2005 to 2010.

If you’re looking for a fun pre-owned vehicle in this $30,000 price range this is a fantastic car to consider and I don’t expect it to last long.

08bmw_m5-5

 

2008 BMW M5 Sedan Vehicle Options
  • Air Conditioning
  • Electronic Parking Aid
  • Power Seats
  • Alarm System
  • Extra Keys
  • Power Trunk Lid
  • Alloy Wheels
  • Fog Lights
  • Power Windows
  • AM/FM
  • Front Air Dam
  • Rain Sensing Wipers
  • Anti-Lock Brakes
  • Front Power Lumbar Support
  • Rear Airbags
  • Automatic Climate Control
  • Front Power Memory Seat
  • Rear Defroster
  • Automatic Headlights
  • Front Side Airbag
  • Separate Driver/Front Passenger Climate Controls
  • Aux Audio Jack
  • Heated Exterior Mirror
  • Side Airbags
  • Back Up Sonar
  • Heated Seats
  • Side Head Curtain Airbag
  • Bluetooth
  • High Intensity Discharge Headlights
  • Steering Wheel Mounted Controls
  • Bucket Seats
  • Interval Wipers
  • Subwoofer
  • Cargo Area Tiedowns
  • Keyless Entry
  • Sun Roof
  • CD
  • Leather Seats
  • Tachometer
  • CD Changer
  • Leather Steering Wheel
  • Telematics System
  • Chrome Wheels
  • Limited Slip Differential
  • Telescopic Steering Column
  • Cruise Control
  • Locking Differential
  • Tilt Wheel
  • Daytime Running Lights
  • Navigation
  • Tinted Windows
  • Driver Airbag
  • Owners Manual
  • Tire Pressure Monitor
  • Driver Multi-Adjustable Power Seat
  • Passenger Airbag
  • Traction Control
  • Electrochromic Exterior Rearview Mirror
  • Passenger Multi-Adjustable Power Seat
  • Trip Computer
  • Electrochromic Interior Rearview Mirror
  • Power Locks
  • Trunk Anti-Trap Device
  • Electronic Brake Assistance
  • Power Mirrors
  • Vehicle Stability Control System

08bmw_m5-4If you are looking for a fast BMW with plenty of room for five people, amazing horsepower and speed look no further than this nice BMW M5 sedan.

Price: $31,000

Cool Car Guy RatingExtremely Cool

________________________________________________________________________

John Boyd

Auto Consultant – John Boyd: The Cool Car Guy

John is an auto consultant with his license at a car dealership in Denver, Colorado. He can help you save time and money on any make or model, new or used, lease or purchase – nationwide! Call or email John about your next vehicle! jboyd@coolcarguy.com or Twitter @coolcarguy

2015 Mercedes Benz GLK350 4Matic Used Vehicle Lease

Hey Cool Car Fans,

2015_GLK350.1Recently, I had a former client contact me about getting out of her 2013 Nissan Rogue lease and into a “luxury” vehicle this time around, but she wanted a low lease payment without having to put a great deal of money down.  I know that many people see the low lease payment offers on television and they believe the dealerships that they can lease an $35,000 to $50,000 vehicle for under $400 a month with nothing down.

However, what most people discover is that in the fine print of the advertisement the manufacturer wants more money down or have an annual mileage restriction of 10,000 miles or even 8,000 miles.  If you drive 15,000 miles a year for three years and you purchased an 8,000 mile lease than your vehicle will have a vehicle that is three years old with 45,000 miles and you told the leasing company that you were only going to drive 24,000 miles a year.  This happens all the time!

The salesperson tells the person not to worry about the miles because at the end of the lease they can buy it out, but what if the leasing company bet wrong on the residual and the residual is $26,500 and the vehicle is selling at auction for $24,000?  You get to buy it for $26,500 or $2,500 more than what the vehicle would actually trade for.  This is still better than being over your miles by 21,000 miles at $.25 a mile, if you give it back to the leasing company where they will cream you for $5,250 in additional depreciation, plus any additional damage the vehicle might have as well.  Which is why it’s important to purchase the right miles to begin with or get as close to where you think you’re going to drive as possible.

The Used Vehicle Lease Option

2015_GLK350.2Why do people buy used vehicles?  Because they want someone else to take all the initial depreciation on the vehicle when it drives off the showroom floor.  When you lease vehicle you are paying for the depreciation and the leasing company is setting a number on what they believe the vehicle is going to be worth, two, three, four or five years from now.  They are taking an educated guess and rolling the dice that the vehicle is going to be worth X if you put on X number of miles during the term of your lease.  As I just mentioned, many times the leasing company will be wrong and that’s a benefit for you!

What if my client had purchased the Nissan Rogue and after three years she wanted to get out of it?  In her case, she had backed into her husbands vehicle with her car and did about $500 in damage.  On top of that though, Nissan had bet wrong so the vehicle was worth about $2,000 less for trade value than the residual value was, so if she had financed it for five years and wanted out she would probably owe about the same as what her residual value was.  Now she could just give it back to the leasing company, cover the

A used vehicle lease transfers some of the risk of ownership of a used vehicle back onto the leasing company again and this is an awesome concept that you are probably not going to hear about from a franchise car dealership.  They are in business to do new vehicle leases because the manufacturer wants them leasing new cars and not leasing used cars.

You can now see the benefit of how a used vehicle lease is similar to purchasing a used vehicle. Much of the depreciation has already taken place, so you are able to transfer some of the risk of driving that used vehicle onto a leasing company.  If the vehicle gets hit with hail or in an accident, while you are driving it and you own it than you get stuck with the bad CARFAX report and I get those calls all the time from people trying to figure out what to do with their vehicle with the bad CARFAX.

A Lower Payment & A Lower Residual Value

2015_GLK350.3When you lease a used vehicle, like the pictures of this 2015 Mercedes Benz GLK350 AWD, that I ran lease numbers on for my client, a great amount of depreciation has already taken place.  For example, I ran a scenario with 12,000 miles a year instead of the 8,000 or 10,000 on a similar manufacturer’s lease with only $1,000 down, plus the first payment and 12,000 miles a year.  The numbers below are based on approved credit and you need a minimum of a 680 FICO to qualify for a used vehicle lease with most leasing companies.

This is a vehicle that I could purchase at the Dealer Auction for her with about 30,000 miles on a 2015, so it still has the remainder of the four year factory warranty from Mercedes Benz.  If she was to lease this vehicle using the estimate that I ran, which could be less depending on what I can purchase this vehicle for or one like it for through the auction it would be a very affordable lease.  It could be slightly more, but I’ve been doing this for 12 years and I’m pretty good at estimating, but I will drill down a specific vehicle for her if she decides to go in this direction.  I’m not sure why someone wouldn’t want to do this?  There is very little downside and it can be great for people in business.  Not everyone knows how to structure these leases properly though, so if someone tells you they know how to do used vehicle leases it doesn’t mean they will have the same results.

You can see the Base Payment, which is what dealers normally quote before sales tax is added to the lease payment.  Also be sure and look at the residual.  So if she were to decide to lease this really cool vehicle for 48 months she can buy it out at the end of the lease for $15,400, which is below wholesale based on sales at the Dealer Auction of 2011’s with about 78,000 miles like this should have at 12K a year.  Which is a case where if she were to put more miles on the vehicle than what she purchased she could find herself in a safe position based on the depreciation that already took place.  This is also a simple interest lease, which is another discussion all together.

 

Term Adjusted Cap Cost Residual Base Payment Sales Tax % Sales Tax Amount Total Payment
24 $30,445.00 $20,583.00 $467.05 7.85 $36.66 $503.71
30 $30,445.00 $19,521.00 $419.09 7.85 $32.90 $451.99
36 $30,445.00 $18,459.00 $386.73 7.85 $30.36 $417.09
42 $30,445.00 $16,929.00 $373.92 7.85 $29.35 $403.27
48 $30,445.00 $15,400.00 $363.87 7.85 $28.56 $392.43
54 $30,445.00 $14,132.00 $351.12 7.85 $27.56 $378.68
60 $30,445.00 $12,863.00 $340.67 7.85 $26.74 $367.41

This is a payment that many people can afford and put more money into their savings or an investment vehicle, a business venture, use for their household expenses, while still driving a late model Mercedes Benz.  How cool is that!  A person could be driving a 2015 Mercedes Benz AWD SUV for less than what they would pay to drive an American or Japanese Import. Which is why I’m The Cool Car Guy.

If you want to have me run some scenarios for your situation and have me assist you in finding a different vehicle just send me an email at the address below.
______________________________________________________________

John Boyd

Auto Consultant – John Boyd: The Cool Car Guy
John is an auto consultant with his license at a car dealership in Denver, Colorado. He can help you save time and money on any make or model, new or used, lease or purchase – nationwide! Call or email John about your next vehicle! jboyd@coolcarguy.com or Twitter @coolcarguy

How To Use A Network Marketing Business To Make Your Car Payment

Hey Cool Car Fans,

Jaguar Lease AdAs The Cool Car Guy, I consult with people from all walks of life about buying, selling, trading and leasing vehicles.  I have been doing this full-time for about 12 years now and I have bought and sold millions of dollars worth of vehicles.

Some of my clients have enough money to write a check for a new $100,000 Porsche Cayenne or a $65,000 Lexus and other people are barely making ends meet.  I have other clients who have just filed bankruptcy and they are starting over financially and need more money.

I thought I would write an article about how if you’re in the camp with too much month at the end of the money, you could be building a Network Marketing business to make your car payments for you.  Even if you’re not struggling financially to drive a better vehicle, but you’re like me and you would much rather leverage your personal brand and create another income stream you may find this article and concept of interest.

Obviously, this article isn’t going to be for everyone, but if you want to have an open mind I’ll give you a really cool way to let a third-party and a business help you make your car payments.

Real Life Clients

2007CorvetteFirst of all, let me explain that I have clients who are using this strategy and have their own Network Marketing businesses where the company sends them checks each month.  I have multiple clients who are earning an income in Network Marketing and they are using their part-time and full-time businesses to make their car payments for them.  I subsidize driving my vehicles using this concept as well because it is simple to do.

Several of my clients will lease or purchase new vehicles on a regular basis since their Network Marketing companies are making the payments for them.  I’ve also found that most people would be driving a better vehicle if a third-party was making the car payments for them.  If you had an extra $500 to $1,000 a month coming in from a sideline business to make your car payments wouldn’t you drive a better vehicle?

Product Endorsements

We have all seen commercials with Peyton Manning or Tiger Woods driving a Buick or Matthew McConaughey driving a Lincoln.  If you haven’t seen these, I’ve dropped one of them into this article for you to check out.  Actors and athletes are always getting paid to endorse vehicles or other products for money.  So why wouldn’t you want to do the same thing and get paid for telling other people about a product or service?  Do you think these celebrities need more money and to drive free vehicles more than you do?  I doubt it, but they understand the power of leverage.

What if you could earn an additional $500 or $1,000 a month from an online business and use that money to make your lease or car payments?  What if it costs you about $100 a month to get back about $500 a month using a legal business strategy and sideline business called Network Marketing?  The concept that I’m going to share with you in this article will work with a number of Network Marketing companies.  However, just like all cars are not the same, all Network Marketing companies are not the same either.

I have met numerous people who do not like Network Marketing or are very negative about it because of a bad experience or they have beliefs based on irrational prejudices. For example, I know people who will never buy an American car because of an experience they had with an Anerican car company back in the 1980’s, which is not rational based on changes in technology since the 1980’s. It is the same type of mindset when people immediately discount Network Marketing without further investigation.

How It Works

Mercedes S-ClassI know of a Network Marketing company that you can join for as little as $25 to become a Distributor, along with a small one-time purchase of about $100.  After that you can get on auto-ship for some of their products each month that they will automatically send to you and they include free shipping if your order is over $50.  Each time you have a monthly order and other people who have ordered, they will send you a check.

In order to qualify for commissions in a Network Marketing company you need to have a minimum monthly order or personal customer sales. Many people get hung up on this aspect of building a Network Marketing business, but if you think about it logically it makes sense that if you are in business then products should be moving through your business.  I wouldn’t be The Cool Car Guy if I never sold any vehicles to people.

There is a typically a minimum of about $100 a month in products that you need to sell or purchase for your personal use in order to qualify for commissions and get paid by the company. I have found that most companies will pay you about 35% on an initial order for people you refer to their company and another 7% to 8% on their repeat orders.  This is usually within the first three levels of their compensation plan that I will illustrate in more detail in this article.

1980_fiat_spiderThe purpose of this article is to show you how to drive a better vehicle and let the sideline business make your car payments for you.  You are not trying to build this Network Marketing business as a “get rich quick” scheme, which is another turn-off about Network Marketing for many people. You could use it though to buy a really cool car!

I like the idea of getting paid on your own website and the website of others, which you can do with Network Marketing.  How many people were referred to Facebook or Twitter and they never got paid from those companies for their referrals.  Here’s a practical example of what I’m talking about and the power of Network Marketing to create additional income.  A person told me about a Network Marketing company and their products that I could use for running marathons.   I have since used their products for years.

The person who told me about the company earns 8% on my orders every month, some months I order $200 or $300 in products from this company, so that person gets a check from the company for about $16 or $24 every month on just my orders.  All they did was tell me about the company and their products and I joined and started ordering their products.  If they have ten or twenty people like me they are earning several hundred dollars a month to make their car payment from a very simple sideline business.  That’s pretty brilliant if you think about it because they are using leverage to let someone else pay for their vehicles.

A $500 To $1,000 Car Payment Scenario

BMW LeaseThe biggest benefit of a Network Marketing business is that you not only get paid on people that you tell to use the products, but you can get paid on the people your Distributors tell as well.  That’s the whole concept and real benefit of networking.

For example, let’s hypothetically say that you put a little effort into your business and you told ten people to join your team and become a Distributor and they each have $100 a month going through their business in product purchases or sales. We’ll assume that your ten people are not as ambitious as you, so they each tell five people and those fifty people each tell just two people, so you would have 100 people on the third level of your business.  You would have a network of 160 people that you could get paid on each month and you only told ten people yourself.  I’m not promoting that you try to become a millionaire doing this venture or that you quit your day job or drop out of school.  I’m explaining that you can use this business model to make your car payments and drive a better vehicle.

How much money would a Network Marketing company pay you, if you ordered $100 in products from the company to qualify for commissions and all of the other orders totaled $100 per sale?  Your business model would look like the following matrix and you can see how the commissions can add up quickly based on the power of duplication.

Hypothetical Example of Building a Network Marketing Business

  • 10 x $100 – $1,000 x 8% = $80
  • 50 x $100 – $5,000 x 8% = $400
  • 100 x $100 – $10,000 x 7% = $700
    • Total: $1,180 commission check.

That’s an easy lease payment on a Maserati, Jaguar, Mercedes or BMW for telling ten people how they could be letting someone else make their car payments for them and helping them to tell a few other people as well.  It’s not magic.  You’re not getting rich off of this concept.  The reason why those “celebrities” are getting paid money to endorse cars on television is because they are reaching millions of people with their advertisements.  That one commercial on YouTube has been viewed over 3 million times. I don’t know about you, but I like looking for ways to let someone else make my car payments for me.

What Do You Have To Lose

ghibli leaseIf you are happy with making your own car payments than just ignore this article and this concept.  Don’t change anything in your life, but if you know somebody struggling to make ends meet than send them this article.  I’m not making any income guarantees or claims here, but simply sharing a concept on how this can work for you or anyone else for that matter.  Take it or leave it as information you can use or discard.

As I mentioned earlier in this article, all Network Marketing companies are not the same just like all automobiles are not the same.  There is a big difference between a Porsche 911 and a BMW 3 Series in performance, fuel economy, seating, handling, horsepower, etc.  If you would like more information about the company that I’m working with just get in touch with me by sending me an email and I’m happy to discuss this concept with you in more detail personally.  You can also direct people to this article and leverage my website to work on creating your own income with this concept.  I have a vested interest in wanting you to succeed and have this work for you, so that you’ll call me for your next vehicle as your income starts to grow.  You can do this type of venture part-time or full-time and there are tax benefits available to business owners that your accountant or CPA can discuss with you as well.

If you’re interested in pursuing this further and use it as a tool to make your car payments send me an email at the email address below.  If you would like to discuss other ways to lower your car payments, get out of your lease or current vehicle or anything else related to vehicles you can reach me at the address below as well.
______________________________________________________________

John Boyd

Auto Consultant – John Boyd: The Cool Car Guy
John is an auto consultant with his license at a car dealership in Denver, Colorado. He can help you save time and money on any make or model, new or used, lease or purchase – nationwide! Call or email John about your next vehicle! jboyd@coolcarguy.com or Twitter @coolcarguy

Buying A Vehicle After A Bankruptcy

thebkcourtHey Cool Car Fans,

One of the biggest issues that people face when buying, trading or leasing vehicles is when it comes to financing.  I’ve seen a bank or a credit union offers someone an interest rate of 11.99% with a 665 and 710 FICO Score from two different reporting agencies and then I submit it to another bank and that bank approves the same person, the same vehicle and the same structure for 6.25%, which is half what the other lender was going to do the loan for.  In addition, they may have different stipulations, such as proof of income or proof of employment or proof of residence or references, while another bank only asks for a copy of the driver’s license.  That same bank though with a different buyer could do the exact opposite of the first bank based on their credit history and the entire structure of the vehicle purchase.

When it comes to people who have filed bankruptcy, one of the biggest mistakes that I see people make is that they get multiple offers from credit card companies offering to rebuild their credit.  The person thinks, “This is great and more is better because I need about five different trade lines to get my credit score back up.” and the next thing you know they have opened up a bunch of credit cards and installment loans to rebuild their credit and then they go to try to buy a vehicle.  They end up getting declined because their debt to income ratio is too high or they have to come up with an excessive amount of money down to get the bank to buy the loan.  It’s not a bad idea to get a credit card after having a bankruptcy discharged, so that a person can start rebuilding their credit again.  However, they don’t want to fall for all the offers because banks like people who have filed bankruptcy and discharged their debt and they know that they can’t file bankruptcy again anytime soon.

The other thing that people do is they get extremely picky about the vehicle they are purchasing as though it is the last vehicle they will ever own.  I can typically get someone approved with credit challenges or even after they have filed a bankruptcy with a number of lenders, but the lender isn’t just looking at the person and their credit.  The lender is checking out the amount of money they are putting down, the type of vehicle they are buying, their employment history, if they have a co-signer or not, how long they have been at their residence, so there is more to getting financed than just the vehicle.  When people work with me, since I don’t inventory vehicles I can take a client to the Dealer Auction or get something out of the rental fleet that is often much better than what they will find on their own walking the car lot and at a better price.  The key though is that it has to be a vehicle that the bank is willing to take a risk on or have enough money down that the bank won’t care.

In other words, someone can actually get a pretty cool car after their bankruptcy and get financed, if it is structured correctly and they are working with a consultant who is willing to take the time to help them find the right vehicle at the right price.  The interest rate is going to be higher initially, but there is no reason why someone can’t refinance their vehicle after 6 to 9 months.  Through my relationship at the dealership where I have my license I have access to lenders who specialize and work with people who have credit challenges, even bankruptcies, so keep that in mind if you know someone who is having  a hard time getting financed because of their credit.

A really good friend of mine who I run marathons with is actually an Executive at a bank that specializes in getting people funded who are currently in a Chapter 13 or have a discharged Chapter 11 bankruptcy.  There are definitely options available for people to get a vehicle and rebuild their credit after a bankruptcy or even if someone just has poor credit.
________________________________________________________________________

John Boyd

Auto Consultant – John Boyd: The Cool Car Guy

John is an auto consultant with his license at a car dealership in Denver, Colorado. He can help you save time and money on any make or model, new or used, lease or purchase – nationwide! Call or email John about your next vehicle! jboyd@coolcarguy.com or Twitter @coolcarguy

 

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