Being bankrupt is hard enough as it is. Having to rebuild your financial record afterwards, however, can be even harder. This is because bankruptcy carries this stigma on the person’s credibility, especially when it comes to financial transactions.
Although obtaining a loan while bankrupt is difficult, it is not impossible. If you need to get a car loan, bankruptcy car dealers will be in the best position to help. Here are the steps you should take to be able to purchase a car even while bankrupt.
Choose Affordable Cars
The first thing you must do when looking at cars at the dealership is to choose the one that works well, is of good quality, but is also affordable. At this point in your life, it would not be prudent to splurge on a brand new car that’s going to cost you way more than you can afford.
Besides, even if you do think you can rely on a car auto loan, the interest rates for the price of a brand new unit is going to put a huge dent on whatever budget you have left.
Do Your Homework on Your Budget
Once you’ve done your initial inspection of the kind of cars you’d like to get, it’s time to get started on crunching the numbers. Compute the downpayment and the monthly fees, as well as any other add-ons that there may be with the transaction.
Having these numbers on hand is not only for your benefit, but also for the lender. It would help if you can show a breakdown of your projected expenses, vis-a-vis your anticipated income. It will reassure the lenders that you will not renege on your loan obligations. After you’ve done your computations you can sign for the car loan and buy your car.
Work at Rebuilding Your Credit
Rebuilding your credit following a bankruptcy is not going to be an overnight affair. You will have to be really prudent with your expenses and on point with your bills and dues. Your lender will want to see that you can be trusted with handling your finances despite the bankruptcy claim.
To do this, show monthly billing statements for the past several months from your credit card bills (which could also be a good indicator of your monthly financial capacity), utilities, or mortgage, among others. Keep in mind that the lender is looking for a financial pattern here, and the pattern that you should show must be a good one.
In any case, make sure to deal with credible bankruptcy car dealers, such as Dick’s Auto Loans. They can help you find the right car loan, one which you can comfortably afford.
Auto Loan After Bankruptcy: 3 Tips for Approval. Loan.com.
How to Get a Car Loan After Bankruptcy. CBSNews.com