Another vehicle needed
December 2nd, 2011 by Questions
My husband and I will be filing a consumer proposal. Our 7 year old used car is near the end of it’s life and is costing us a lot in repairs. The car is vital to earning income and will need to be replaced. We own an older Acura that costs more to run but could be traded in or sold. Would it be best to trade in our Acura and secure a car lease before we file because I doubt we’ll get a car loan for the next 5-7 years and we need at least one reliable car. How would that look to creditors? Would it hurt our application? Thank you.
Posted from: Ontario
One Response to “Another vehicle needed”
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December 02, 2011 at 7:24 am, A licensed trustee said:
What you are suggesting may sound a bit crazy – taking on new debt just before you file, BUT in many cases it is the correct thing to do. If you need to finance a car (loan or lease) the interest rates will be quite high if you wait and do it after you file, so in many cases people do exactly what you are asking about – go out and get a “new” car before they file. Discuss this with your trustee before you file if you are uncertain.