young friend has discharged bk, wants to finance a truck

queenlives

queenlives

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folks,

a young man (35 y.o.) i know with a sole proprietorship business wants to purchase a used truck from an acquaintance of his. he approached wells fargo (his bank) for financing but they declined the loan; he has asked me for financing suggestions, so i said i'd ask primers for their suggestions:

his situation:
* 35 y.o, sole proprietorship business
* credit score of 650
* secured credit card for 2 years, paid in full each month
* discharged bk 5 years old

proposed loan vehicle details:
* 2008 dodge ram turbo diesel truck
* 21k miles
* kbb of ~40k (as configured)
* sale price = 29k
* down payment = 10k
* loan value = 19k

i'm curious if there are any respectable finance companies who would handle this type of deal. any / all thoughts are appreciated.

thx,
hal
 
Does he have an account at a local credit union? His best bet is to walk into there or another credit union and apply for a loan face to face. His situation doesn't seem that bad. It's tough to get a loan these days, but I'd be surprised if he got declined everywhere.
 
White92 said:
Does he have an account at a local credit union? His best bet is to walk into there or another credit union and apply for a loan face to face. His situation doesn't seem that bad. It's tough to get a loan these days, but I'd be surprised if he got declined everywhere.
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thx, craig - i didn't think to ask him that. i'll pass this thread link to him.
 
Why does he need such an expensive truck? I would think that he could find a decent one for half that; maybe not as macho, but he should swallow a little pride as he rebuilds his credit.
 
I agree with Craig. (Boy, that's a first!:wink:)
 
flaminio said:
Why does he need such an expensive truck? I would think that he could find a decent one for half that; maybe not as macho, but he should swallow a little pride as he rebuilds his credit.
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Probably because he is a sole proprietor and he'll be able to depreciate it as part of his business and perhaps reduce tax implications. Just a guess on my part.
 
flaminio said:
Why does he need such an expensive truck? I would think that he could find a decent one for half that; maybe not as macho, but he should swallow a little pride as he rebuilds his credit.
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my sense is it's an opportunistic purchase: he needs a new work vehicle and feels this one is very attractive w/great price... he's among the least "macho" guys i know and (5 years in to the bk), from where i sit, he's managed his pride pretty well.

i've pointed him to this thread - it'll be interesting to see what he does.

thx again for the feedback.
hal
 
Fair enough points; I would still suggest that a more modestly priced vehicle would serve this person better financially.
 
flaminio said:
Fair enough points; I would still suggest that a more modestly priced vehicle would serve this person better financially.
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Since he has 10K down, he needs to find a $20k truck. He should be able find financing with 50% equity. I just financed a guy that discharged his Chpt 7 BK a year (52 weeks) ago, but he put $12k down and had perfect payment history for last 7 years (BK was due to business situation) Different circumstances, but I am guessing 50% or more down will get him financed.
 
ChopsJazz said:
How about approaching a Loan Club? An acquaintance of mine is a proprietor of one. They seem to be gaining in popularity lately.
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What's a "Loan Club?"
 
Dtrigg said:
I agree with Craig. (Boy, that's a first!:wink:)
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Sorry for the late response. I hit my head when I fell out of my chair and just came to. :smile:


What's a loan club?
 
White92 said:
Sorry for the late response. I hit my head when I fell out of my chair and just came to. :smile:


What's a loan club?
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Is there an echo on this thread? We had lunch today. Let's plan on you getting out here to join us. We talked about this today.

P.S. I voted against it...
 
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