How to Obtain Auto Financing after Bankruptcy or Foreclosure

Welcome to RightsRadio.com. I’m Dr. Joyce Starr, and my guest is our resident expert on auto financing/auto loans, Dora Lee Stallard. Dora Lee is on a mission. “Our auto financing program gives me a chance to reach out to people – to help people feel good about themselves. It’s almost like a ministry.” Based in Indiana, Dora Lee Stallard is an “angel” auto financing coach for consumers across the nation. Show Date: September 16, 2010.

Listen to the program – enjoy the highlights below.

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

Good news on auto financing.

Q: How has the economy has affected auto financing in general – particularly the accelerating numbers of foreclosures. Are auto lenders tightening their belts – especially for those who filed for bankruptcy or went through foreclosure?

A: Actually no. Financing is available. In fact, I feel that companies in this arena are doing even more to help.

Q: I would have expected you to say just the opposite – that auto financing has tightened up exactly like mortgages.

A: Lenders I work with understand that there’s is a human side to this. They have to get up and go to work every day themselves. People have the option to buy a house, but may have no choice regarding a car.

Q: What about rates?

A: Rates vary state to state. They’re set by auto finance committees.

Q: What are the prospects for auto financing if someone filed for bankruptcy?

A: People often surrender their vehicle during bankruptcy because they’re upside down on their car. But they still need transportation to get to their job. Banks and lenders who specialize in auto financing want to know if the person (or couple) was prompt in paying car payments, if they previously paid the minimum due monthly and if they’ve done their homework before seeking another vehicle.

Q: What homework must they do?

A: First, you should understand what’s available in your state. You should identify dealerships in your area that are able to help you. You can’t get into an auto loan without putting money down. Be prepared to put down between $500 and $2500.

Q: What if they don’t have it?

A: If even $500 is almost impossible, lenders will work with me. But you may not get the SUV that your heart desires. Be realistic. I’ve had consumers wait months to come up with the $500.

Q: Please describe your program.

A: My particular program is pre-owned vehicles. The lenders want to see a vehicle that is mechanically sound. You must have proof of income – at least six months of bank statements for those who are self-employed. Never give your credit info over the phone. Go in and meet the person who is working with you. Try vehicles on for size. Find one that fits your budget.

Q: What else should the buyer be ready to provide?

A: Proof of residency, a utility bill and phone bill. Some require as many as 10 references of people that can verify that they know them.

Q: Isn’t that a potential privacy violation? What if the buyer defaults?

A: The lender won’t force references to pay for the car if the buyer defaults. In fact, they’re unlikely to contact them at all – unless help is needed in locating the buyer.

Q: What if the person doesn’t have a job.

A: No bank will lend to someone who is not employed, unless they’re on social security or social security disability.

Q: You have two websites with excellent information.

A: Yes, please visit freshstartindy.com and freshstartindy.net. We provide information on auto financing, how to improve your credit score and also identity theft protection. Your listeners can contact me directly through the form on freshstartindy.com.

Auto Loans: Why Good Credit Could Hurt You

The Rights Radio Power Hour features car loan financing: Why and when good credit can hurt you. My guest Dora Lee Stallard, finance manager of a Nissan Dealership and also the director/founder of FreshStartIndy.com.
Show Date: April 8, 2009

Preposterous as it may sound, it’s often easier to obtain a car loan if you’ve been through a bankruptcy than if you have a good credit score.

Were you stressed out when it came time to arrange financing for your car loan? The majority of consumers who have been through this process describe it as extremely uncomfortable with a large dose of anxiety thrown into the mix.

Add to this the fact that more than half of all consumers do not qualify for conventional financing, and you have a sure-fire recipe for a really bad day.

My guest explains why auto financing is a psychological boost for so many people and takes you through the key steps in applying for an auto loan. She also doubts that any of the major auto manufacturers will disappear.

While Dora Lee’s specialty is working with customers that have credit issues, her knowledge of car loan financing applies to anyone that needs to arrange financing for their cars. The website she founded – FreshStartIndy.com – offers an inside look at the car loan process.

This show aired live on this page on April 8, 2009. Please click the play arrow below to listen to the replay.

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

To your empowerment!

Learn how to save money with car loans and home loans here.