[3pnt4maro]

Ok so heres my situation. I had perfect credit until a nasty four wheeler wreck and I went bankrupt cause I could not work and pay my bills..I ended up having 2 surgeries to put my shoulder back together so it was a bad time....lost the last car I had which was a 2000 convertible camaro, which was modified heavily (sold it) and downgraded to something more economical that is paid for now. (The camaro in my signature, which is my toy and I have the title to). But Needless to say the bankruptcy destroyed my credit.

I realized that after the bankruptcy I had to get my credit started back on a good path so I applied for a small credit card, got approved, and steadily paid on it for about a year to get a history back going. I know how to manage credit wisely and have done. Well fast forward to April 2008, I decided to buy another car to boost the credit and I wanted a BMW but figured I would never get approved...However I was approved for a less expensive 4runner for 20k and payments in the 400 range, but I knew I would not be satisfied without a BMW, as my friend had one and thats the car I wanted. Well a local Toyota dealer had the car I have now for sale and it turned out to be a 330i. I went and looked at it and figured there was no way I could get it on my credit, although payments werent a problem at all, just my credit. After talking to the salesman who I attended highschool with, he decided to run my credit to see what we would be looking at and long story short he got me approved for the BMW at a 16% interest rate through Capital One and its locked in. I know its alot and Im getting raped with no lubricant, but I needed something to get my credit back on a good track....Payments are currently 679 a month for 72 months, so yes I know its a killing, but I needed to boost my credit back up, which it did, and money wasnt the factor, I can pay for it.

I now have another premium credit card through capital one and a furniture credit account that reports to the bureaus, so my credit is steadily improving. In the last 12 months I have made my 12 payments on time and always paid some extra on it. I also have not been a day late on any of the credit card bills, or my furniture payments. One card is paid about half off and the other is fully paid off, the furniture is about half paid off.

My initial plan was to keep the car for a year to boost my credit and then trade it in or sell it....But I love the car so much. I went to a local BMW dealership to have the car serviced and got to talking about the 135i with a salesman about four months ago and told him the story and he said he could get me approved for the 135 and I eventually test drove it and they ran my credit and actually approved me for 0.9 interest on the car, but after its price plus the negative equity in my car, it totaled 53k, which was a lil more than I wanted to spend and I was only willing to put 4k down and they wanted 6k (basically to cover the negative equity in my car). Payments would have stille been in the 600 range.

I want a 2007 335i for the turbos and sport package but am still just as happy and fine in a 2006 330i...I love mine to death, but mine doesnt have the sport package, only premium and technology.....so would I be smart to trade the car in on another 2006 330i with the sport package and premium that I want, and just purchase a CPO car? I have found several for around 26-27k CPO'd , and with my negative equity now, I should be around the 30-32k mark, which is where I wanna be.

Do you think this is feasible or am I wasting my time and should just try and refinance the current one I have and keep it. Its not CPO'd but i do have a 72k warranty through a 3rd party company. Like I said the payments of 679 havent been a problem and I can continue to pay them but I would rather be in the sub 500 mark. Any suggestions?

Seems like when any dealer hears the bankruptcy part they are scared to wanna deal, not realizing good things happen to bad people. I had perfect 700-750 credit before the accident and simply couldnt help it...any suggestions would be greatly appreciated.

[solefald]

i think a wise step for you would be to start looking at cheaper cars.

[Bimmer Nerd]

Originally Posted by solefald

i think a wise step for you would be to start looking at cheaper cars.

+1, get your credit history back on track and then start looking for bmw's, as you said you can make the monthly payments but because you can make the payments doesn't mean the banks will trust you.

[3pnt4maro]

Originally Posted by solefald

i think a wise step for you would be to start looking at cheaper cars.

not being a wise ass, but why do you suggest that. I can afford the cars just fine and my salary allows for it, Im not living outside my means by any stretch of the imagination, all other bills are paid for just fine and with no problem, its simply an issue of the credit and the rebuilding structure that I was looking for suggestions on. I can afford up to 800 a month payments without a problem on my current budget, but thats not what I want, I prefer the 500 range. But either way I know I gotta pay to get the credit boosted. I was seen as a risk, so Capital One charged their 16% percent to lend me that credit and I knew that going in, however I only planned on keeping the car for a year and that time is here..

So its not a matter of cheaper cars...

[3pnt4maro]

Originally Posted by godora

+1, get your credit history back on track and then start looking for bmw's, as you said you can make the monthly payments but because you can make the payments doesn't mean the banks will trust you.

agreed and thats why I am thinking of holding out a little longer and paying off all my debt besides my car, which will also help. Save for a bigger downpayment, which will obviously help, and pay this car down some so the hit on it wont be so big when I trade it in

[positiveions]

umm here is how I did it. I ran into some problems. Tried to start a business and spent all kind of money on it, but didn't work out. At that time I had a BMW M3 financed through BMW. Never was late on the auto payment. But later, business didn't go so well, and I was way behind on my credit card payments. However, i kept paying for the car on time. I filed for bankruptcy, after an advice from one of my friend. Three years later, I tried to purchase a used car from a BMW dealership, BMW finance didn't approve me. Thus, I ended up leasing a Passat from VW due to the fact I had a VW prior to the M3 and managed the payments very well. They gave me a great rate. After the lease had expired on the Passat, I went and leased my current ZHP. I got a great money factor. As for having credit cards, couple companies opened a line of credit immediately post bankruptcy. Sure I was paying an annual fee, but hey a person has to be thankful. Now, I have a great FICO score, along with only 3 credit cards. That is all I need.
My advice to you, start slow and small and then go big. You never know what happens in life. Good luck

[vbb]

Buying a used 330i with finance numbers at $679/month for 72 months to "boost your credit back up" simply doesn't make sense no matter which way I read it. I can understand feeling like the BMW would make your happier than the 4Runner, but wow... that's an astronomical payment at an absurd interest rate. You're going to be upside-down for almost the entire life of the loan.

If you're making good money now and are dead set on a BMW, why not save up for a bit, put down a sizeable downpayment on a used 2007 335i (you can find one under $30K) and then pay the car off before you even THINK about trading it in on something else. Just my opinion.

[3pnt4maro]

I see what youre saying and in hind sight it may have not been the best move but I wanted the car and could afford the payments and then some..so it was more or less to keep it for a year and trade it once it helped my credit..I realize I will have some negative equity in it..If I dont trade it I will refinance it since it has boosted my score up as I have paid all payments early and paid extra so that looks good...just asking some general opinions...

and its not an option now, my cars from now on will be BMW's I love this one and am sticking with them..after purchasing this one my mother wants to buy one now as well

but thanks for the replies guys, I know not everyone sees things the same way

[GnokGnik]

Building credit is a myth with credit cards last time I checked. Large purchases are the only things that make a noticeable difference.

[kgb1637]

Originally Posted by GnokGnik

Building credit is a myth with credit cards last time I checked. Large purchases are the only things that make a noticeable difference.

+1, the FICO score is based on many different factors and a credit card or 2 plays a small part to raise your credit and a big part to lower it. Your mortgage/rent has a much larger impact. Also, 700-750 is good credit but nowhere near perfect.

[3pnt4maro]

There is no doubt that the credit cards have helped, nto as much as paying for the car on time, but thats what my credit history was based off of was my credit cards cause I gradually built credit.....after my bankruptcy I applied for one credit card and got that one and used and paid it wisely for a year..it helped to show that I was responsible after the bankruptcy and just hadnt run up my bills and bankrupted...showing that I pay all my accounts on time, whether it be a car or a credit card is about 10-15% of a FICO score, so it definitely helps, plus debt to credit ratio helps, so if I have two credit cards with XXXX amount of credit on them and no debt that also helps boost the credit, plus length of credit history with those credit cards has helped me, with my longest account being almost 7 years and it is a credit card. I did not do a full bankruptcy, I did the restructuring one and I kept my four wheeler and two credit cards and paid them off as agreed, so I didnt totally destroy all of my credit, I made efforts with Honda and the two credit card companies before the bankruptcy to pay them off instead of fully bankrupting on them...and thats what they want, not to just get screwed completely..some effort is better than none...and they got paid in full

When the BMW rep pulled my credit last time he knew I had bankrupted but he and the manager of the location both sat down with me and said that my history of paying all my accounts on time since the bankruptcy, showed I was being responsible in their eyes and they were willing to work with me a lil more than usual...and like I said I got approved for the 0.9% but could not dish out the money to cover the negative equity that they wanted, so maybe this go round things will be better, I will have a good down payment next month and my negative equity is obviously less than it was, plus my credit has obviously gone up as I have continued to make payments and all are on time, with extra being paid

But thanx for all your responses guys

[el presidente el perfecto]

Just ride your bicycle and be done with it.

[TommyK]

get rid of capital one, they are know to have the worst/higest interest rates in the buisness

[krnnerdboy]

What ever happened to this guy? But for anyone else in this situation...

I would have switched to the 135i just to not pay the 16% interest. or if they qualified you 1% on cpo I would just make the trade b/c refinancing cars sucks...the lowest rate w/ excellent credit is at 8% w/o any company incentives

[e90fanatic]

have u ever considered just getting a cheaper car and just save the money to buy the car instead of financing? when you have to finance a car due to not having money to pay in full is spending beyond your limit. e.g. what if you lost your job next day? you'll be in bankruptcy...again