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Friday, September 11, 2015

Buying a Car After Bankruptcy!

I have contemplated the car thing for a while. I was going to wait until Christmas time because it will have been 2 full years since claiming bankruptcy and I hope to go back to school in January while working full time. I am going to need to have a car by the to get across the city quickly.

I have thought about buying one out right. I thought about financing one that was super cheap to help my credit but not hurt the wallet. I thought about so many different options.
If you have read my other posts you will know that I have had a car and had it taken away when my ex claimed bankruptcy and then I have finally had it cleared off my reports after my bankruptcy.

I currently work a minimum of 45 hours per week. I would love to work the unlimited overtime hours that are always available but because I don't have a vehicle I can't. I want to hang out with people but I don't have time/ I am too lazy to walk. I spend so much money on cabs it is not even funny. I live in a small city now, the type of city that has city buses but that takes half the day to get across the city.

I check to see the vehicles that are available all the time for a few different companies in town to get an idea of what I am looking for and how much I am likely to pay. I have decided that I would be looking for either a Honda Civic or a Mazda 3. I like both, have driven both in the past. I really like the way that they feel.  I was open to getting a car as old as 2010 if the price was right and it had heated seats etc. 

I walked to work last week in a huge down pour. I was soaked through to my "delicates" for the entire day. My work loves to pump the AC. I was frozen solid for the whole day. That is the moment I thought I would start to seriously shop around and start putting in some applications.

That was last Thursday. When I got home that day, I jumped in the shower to thaw out a bit. Then I grabbed a tea and checked every single company that sells either Honda or Mazda. I filled out 2 applications.

Silly enough, I couldn't help myself but to apply at Honda for a 2015 Honda Civic EX. I submitted the application at about midnight. But 9:30 am I received a call that I was approved for financing, but not for this vehicle. They were only able to get me into a 2013 Honda Civic LX which a TON of Km on it. They also advised that I would have a very high interest rate. Like I legit choked when I heard.

I did hear from the other application that I was approved as well and they had a 2014 Mazda 3 Standard fully loaded with Nav.

Honda's certified program has 100 point inspection as opposed to the typical 30. The vehicle that they were offering me actually wasn't in my city yet and wouldn't be here until Tuesday of the following week. I told them to continue the application.

I was contacted later in the day to send in my pay stubs for proof of income. I sent them in. Then I didn't hear anything back all Labour day weekend. On Tuesday of the following week I contacted my sales guy. I knew that he was on vacation until the following day but when I hadn't heard back I wanted to be sure that he could follow up as soon as he got into work the next day.

I finally heard from Honda that the bank was going to require proof of income. They wanted me to go into my work and ask them to call the bank. There are almost 400 employees in my place of work so they said that they couldn't do that. My work gave me the card of the person that the bank would need to contact. I emailed that to the contact at Honda. 

I had an appointment to go in to see the car on Thursday morning. One week after the application. (yesterday).  The car had bald mismatched winter and summer tires. It had a cracked windshield and 100,000 km but it was beautiful. Tinted windows, upgraded rims, heated seats.

I do apologize for the photos. If I was thinking clearly I would have taken really nice on with the whole Honda dash and such but here is the centre of the dash, front, rims and back of the car. I really just took these thinking it would remind me of what it looks like when I'm writing a pros and cons list on whether or not I should sign the papers. 

After test driving the car I fell in love. I am not a fan of light grey interiors because the seats always get so gross and dirty but I will get some seat covers if it bothers me too much.

I had originally thought that I was going to be able to pick it up on this visit if I liked it, but the financing wasn't anywhere near completed. The car was also not any where near ready for me to take it anyway. I am not fully sure of what they did to the car just yet but I do know that it was getting 4 brand new tires and a new windsheild so that is a definite plus.

Anyways, I left the car there and went to work. I received a call in the afternoon from Honda stating that the bank stating that they contacted my work and she said that she couldn't give any information to them at all and that I would need to contact her and request a letter.  While we were both in the building.... after already speaking to the office about it all.

I called her and she prepared the letter. I got the letter not that much later. Sent the photo of the letter to Honda (the lady at Honda really needs to send confirmation emails to people when she receives things from them).

Fast forward to this morning (Friday) I already had an insurance company in mind and had gotten a quote from them earlier in the week. I have tried calling them every day and haven't been able to get through. Clearly they don't want my business so I moved on.
I called the company that I am going to go with. Insurance is really very frustrating and difficult to obtain. When I got my last insurance it was a quick phone call and it was set up.
This time there is a lot more involved and its really frustrating to the point i'm almost ready to call it quits on the car.

Quick back story-
I got my beginners license in ON. Moved to NS and got another beginners out there. Became a fully licensed driver out there.
Driving down the street the car in front of me stopped to look into a parking lot where Christmas trees were being sold at the same time I glanced down to turn on my heat.
I touched the back of their car. Left maybe a tiny scratch on the car and nothing on mine. They claimed injuries and 1400 worth of damages. I honestly thought it was a joke (not literally) and didn't even think they would call insurance. We didn't call police or ambulances everyone was fine. They asked me if I was drinking. I laughed because I was still in my chef whites. Cool- at fault accident.
The next year was when things went really bad for me financially. First the safety and registration were up in the car. I could not afford to get the car safety done but I couldnt get the registration with out the saftey. Because I wasn't able to drive the car then the insurance payment fell down the list of priorities to me. That lapsed. Insurance was cut. I didn't drive my car anywhere really at this point. I did however drive it to the laundry mat a few blocks away from my house stupidly. - Ticket-
Ticket was actually paid through tax money when I claimed bankruptcy.
 At that point I didn't have a vehicle at all for years. I had a few friends that let me drive their vehicles from time to time but nothing of my own, nothing I was insured on.

Then I was driving a fully registered and insured vehicle I was going like 15 over the speed limit on a hwy. Pulled over. -Ticket-  Very frustrating because the person I was driving with almost always drives 40 -50 above on the hwy and never gets caught. I never speed and the one time I sped up to pass someone I get pulled over.

Then I changed my license back to a full license in Ont. This meant that I skipped the middle license in ON. 

When I spoke to the insurance company they added in all of these things and then my quote is up to 220 per month. They said that they can get insurance taken care of same day and they are open on Saturdays. But I need to get in contact with NS and get my insurance claim and my driving experience letter. They also need 2 payments upfront on a CC. Not a problem for the cash but I don't have that much space on my card because I had to rent a car for this weekend because my car wasn't ready - ironic eh?  I was kind of wanting the financing and car to be delayed at this point for a few more days till my payment clears on my card.

By this time I need to leave for work. On my walk I call my old insurance company I was on the phone with them for about 30 mins while they prepared everything and was almost late for work. They then advised me that they couldn't give the experience letter and I would need to call access NS.

I had to start work and was late getting logged in as it was. Waited till break then called Access NS- they were super rude and clearly NS is living in the stone age because nothing is available online.
I have 3 options in person, by mail and by fax. I started to really panic because I don't have a way to fax anything to anyone and I was running out of time on my break. The lady kept putting me on hold I had to hang up and go back to work. I found a fax that I can use. I should have really left work today to get this all taken care of but I need my job right now and more hours to pay for all of this.

At lunch I contacted my sales guy at Honda to see sort of where everything was at before the weekend just so I would have an idea. I also wanted to give them a heads up about the insurance issues.  He responded fairly quickly. My car is ready and we are just waiting on financing.

I finally got a call from the lady at Honda while I was working at 5:30pm stating that my financing is in!!Ugh I wish I had taken the day or at least half to deal with the insurance issues. I am heading out of town tomorrow and I could have been signed off and ready to go with the new car on the trip in the end.

 At the end of the day the car is going to cost 400 per month and the insurance is going to be 220. This is a lot of money for a car that is not brand new. However, purchasing it from Honda directly is almost as good as buying a brand new Honda plus it is only 2 or 3 years old. The resale value of Honda Civics are huge. I know this car will get me through the next 5-6 years of school. My insurance will go down each year and hopefully I will be able to put extra on the car each month to pay it faster as well and get some of the interest rate taken care of.
When school is finished and my car is paid off I will be have great credit.

For the next 4 months now that I may have a car aside from the gym, writing for you folks, figuring out how to live on a tiny budget while being healthy, taking my last upgrade course, I need to work as many extra hours as possible so 12 hour days- 60 hour weeks here I come. (unless I finally get the promotion to the salary position I have been waiting for)

Moral of the story- If your need for a vehicle is there and you have the available funds to pay for it then you can get an almost brand new car just one year after being discharged from bankruptcy.