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This post talks about ways to get approved for a car loan after you are over from your recent bankruptcy. Enjoy the post from Bill Tsouvalas!
Acquiring car loans after bankruptcy is frequently considered impossible. However, that assumption is wrong. You can still obtain a car loan if you filed for bankruptcy and subsequently been cleared of your debts.
Do you qualify for a car loan?
If you have been cleared of bankruptcy and you are looking to purchase a car, auto loan brokers can prove to be invaluable. Loan brokers have a lot of knowledge on how to go about with helping people with bankruptcies. Furthermore, they know multiple lenders that specialize in providing financing to persons with bankruptcy history.
If you take your time, to research on how to find a loan for motor vehicles, it should not be too troublesome even with a prior bankruptcy history. Pick at least three lenders whom you can bargain with on the loans and then compare the best rates and conditions.
You can use web searches but it is best to meet with potential lenders in person.
How to Find a Car after Being Discharged of Bankruptcy
Acquiring a bank auto loan after a bankruptcy discharge is achievable. Nowadays, banks have experienced these situations more often what with the economic slump, and unemployment rates being so high.
Ten years ago, it may have been difficult to get a bank car loan after bankruptcy, but today it is much easier. What you need to know:
1.Compare Rates Online
The easiest approach to find a bank car loan with a discharged bankruptcy record is to go online. There are many sites dedicated to submitting your information online.
These sites are good because you fill in your information once and the site distributes your details to different banks.
This allows banks to compete for your business. It, therefore, saves you time from making phone calls or numerous visits to local banks.
2. Expect Higher Rates
with a bankruptcy past record, you are targeted as a high-risk customer to the banks. The rates you pay for a bankruptcy range from 15 to 20 percent, which is higher than the average loan rate. However, banks do offer lower rates even for bankruptcy cases if they have had a previously good relationship with you.
The rates will still be slightly higher, but borrowing from a bank you have good relations with saves you some money because the interest rates will not be too high compared to other commercial lending institutions
3. Be Realistic with Your Car Choice
A bank is not going to offer you a highly priced vehicle loan after bankruptcy. Your financial borrowing ability ranges from $10,000-$15,000. You may not get the fancy car you were hoping for; the recommended price range will get you a durable car that will serve its intended functions.
After a few years, you can consider trading in your car for something better and as time goes by, after proving to the bank that you are capable of paying off your debts, getting the car of your dreams can become a reality.
4. Expect to Put More Down Payments
the more money you have to put as a down payment on your car, the higher the chances are of getting a bank loan. This shows the bank that you are serious about your investment. The bank will have more faith in you and regard this gesture as proof of the ability to handle the loan installments.
A 20% down payment is enough to get your car loan approved. Some car finance companies can help you even with a not-so-good credit.
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Kevin @ Credit Bureau Insider says
November 14, 2013 at 8:15 AMIn the U.S. once you declare bankruptcy, you are unable to file again for ten more years.
Lenders often find these borrowers are less risky than someone with low scores for other reasons. Other borrowers can still go bankrupt.
Betsy @ ConsumerFu.com says
November 15, 2013 at 5:52 PMKevin is right. As a former lender, I often looked beyond the bankruptcy, especially when it was due to unusual circumstances and not a lack of responsible money management. It depended on the collateral, their cash in the deal and other stability factors, but it wasn’t impossible.
Bryce @ Save and Conquer says
November 16, 2013 at 9:20 PMWhile I realize it won’t work for everyone, the only way to really get ahead is to save for your car purchase ahead of time. Start a car bank account at someplace that pays some interest, like Ally Bank, and put the equivalent of a car payment into the account each month. Once you have saved enough for a car, and purchased a reliable used car, then rename the account for the next big thing and keep saving. Much, much much much, much better than taking out a loan.
[email protected] says
November 18, 2013 at 2:06 AMThat’s a great thing to know. It’s such a hassle to get a car loan already let alone put in those circumstances. I have to admit, it would be a challenge.
How to declare bankruptcy says
November 20, 2013 at 8:40 PMIt depends on the car owners if you give him a legal process to get car loan, but in my opinion theirs no problem when you are going to get car loan as long as you settle all your debt in the past.
Bankruptcy Sydney says
November 22, 2013 at 11:33 PMEveryone deserves legal help. Contact a consumer law attorney to discuss about your bankruptcy options. Only, he will be able to review the facts and give you the correct advice.
DJ says
November 24, 2013 at 10:15 PMDon’t get a car loan! Save 2 or 3 thousand dollars and buy a car outright. Drive it and save another couple thousand. Sell the car and upgrade. Usually you’ll be in a 10 to 15 thousand dollar car within 5 years. And it will be payed for. And you’ll save on insurance by carrying only liability coverage.
Bankrupt says
January 6, 2014 at 8:56 PMYes you can as long as you had the proper job to pay for the monthly payment for your loan.
jennifer says
January 30, 2015 at 9:09 AMGod has bless me with three kids and a loving husband, i promise to share this Testimony because of God favor in my life, 4 months ago i was in desperate need of money so i thought of having a loan then i ran into wrong hands who claimed to be a loan lender not knowing he was a scam. He collected $1,860 from me and refuse to email me, since then i was confuse,but God came to my rescue, one faithful Sunday i went to church after the service i share idea with a Church member and she introduce me to a loan agency called Mrs Erica Simon, and she said she was given $300,000 by the loan agency.