Looking for a new vehicle

I am looking in to trading in my vehicle. I am currently going through a consumer proposal and am aware of the effects it has on my credit rating but what I am wondering is, this CP dose not include my vehicle. I have always had a car payment and I have always made it. Never defaulted!

Do they take that in to consideration when you wanna trade your vehicle in? Or should I just hold off until the CP is off my record.

I don’t wanna waste mine or a dealerships time if it’s not beneficial. I also don’t want 1000 unwanted calls from dealership if I pay a visit and show interest if there is nothing they can do! HELP!!




16 Responses

  1. No they don’t take that into consideration best to wait until your done your CP

  2. Marc Cornies Marc Cornies says:

    If you’re doing a CP, obviously you’re in too much debt, which they’ll see on your credit report/score. Even if they do it the interest rate will be high. Best to lower your debt and do it then.

    • This. When you go to your counselling sessions that are mandatory they will give info on c.c you can apply for right away to help fix the credit rating. I would advise you wait on the new car.

  3. Did you not listen when you went into CP, they couldn’t take your vehicle correct but you ain’t getting a cell phone for 8 years never mind a car

  4. The consumer proposal will show up on your credit bureau. It will be there for a few years. It will have an impact on your ability to get new credit and the interest rates you are charged during that time. While people with strong, unblemished, credit reports can qualify for very low rates those who are going have damaged reports should expect to pay upwards of 30% or more in interest when and if they can get approved.

  5. Your credit is still crap for 7+ years. You would have been better of going bankrupt, if it’s yours first time! It’s 9 months and you can start rebuilding right away with co signer!

    • Can’t keep your vehicle if you claim bankruptcy. And a bankruptcy stays on your record afterwards, it’s not a get out of jail free card.

    • Not with a consumer proposal Jolie, it’s not the same as bankruptcy. You can apply for a high interest cc that is designed to fix your rating over time. Consumer proposals do not stay on your record after you pay them off. It is not bankruptcy. Also in Alberta they cannot touch your car if it’s worth less then 5k. Maybe inform yourself before you spout misinformation.

    • Gina Cook Gina Cook says:

      Brittney Castle You can keep 1 vehicle thats worth up to $5000.00

    • Erin Johnson Erin Johnson says:

      Actually, a CP gives you an R7 rating on your credit. A bankruptcy gives you a rating of R9. A CP stays on your record for 3 years after you pay it off. A bankruptcy stays on your record for 7 years.

  6. Barb Haekel Barb Haekel says:

    Maybe part of your problem for claiming bankruptcy is that you keep having a car payment. Be smart and live within your means and buy a cheaper second hand car outright, then you have one less payment to worry about and can maybe keep yourself on a better track for the future.

  7. Wynn Jera Wynn Jera says:

    My husband just went through this. He paid his CP off after only 2 years of payments. 1) his payments were only $120 a month so it made it easy to make extra payments 2) we are trying to move from our condo into a house. So we wanted to improve his credit. He went through Fox Miles and was told he could not apply for any credit at all while going through his CP, miss any payments and had to report any extra income over and above his paycheques.

    Now that he has paid his CP in full early he was given a copy of his credit bureau letter updating them of his status of full compliance.

    Now that he has that compliance letter, he can apply for credit. Not saying he will be approved right away, but at least he has to build from.

  8. You can trade in your current auto and get another one even in CP. The issue is it will be high interest so compare the interest you have now and see if it’s worth it. If you have no new revolving good credit after the CP (credit cards etc) your looking at 15-25% interest (depending on a few variables) the CP stays on your bureau for 7 years so figure out what’s best for yourself.

  9. Tanita Faye Tanita Faye says:

    Hey I worked in sub-prime auto finance/leasing for 5 years as a credit analyst. Just recently left the industry. If you have a banko/proposal/etc you will likely not qualify for any bank loan/prime rate. You will likely have to go with a sub prime lender and the interest rate will be high (up to 29.5% APR) depending on how long since yourbproposal, do you have positive payment history after the file date of your program, do you have residential and employment stability, etc. I would say if your looking for a low interest loan or low payments I probably wouldn’t bother, however the dealer can always fight to get you the best rate possible. But generally, yes you can still get a sub prime auto loan while in or just after completing a proposal. Bankruptcy however, most lenders ask you to be discharged before they’ll do anything. Sub prime rates generally go anywhere from 10-29.5% with some non prime lenders offering more competitive. It all depends what your willing to pay for interest. If you sign at a high rate I’d recommend getting a vehicle that’s temporary top u… then build your credit back up… then reapply in so many years for better rate 🙂 Sometimes this can work. Or just wait some time until you have built positive credit after your proposal

  10. Sid Saraya Sid Saraya says:

    Best thing to do is avoid the Dealerships, Sadly they won’t have your best interest at heart. Regardless of your scenario their main goal is to sell you a vehicle and move on to the next number. Over 14 years of experience in the industry helped me understand how to best approach this type of scenario and find the best ways to try and work around it. Some of the comments below can be somewhat deflating and you should ultimately listen to your intuition. If you decide that you want to look into a solution a little further without jeopardizing your credit further and without being made to feel uncomfortable I recommend you contact me or one of our members at Creditline One. We will help you further understand your situation with a Credit Analysis at no cost to you. At that point if you decide to move forward we will help you every step of the way, no pressures, no obligations.


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