Buying A Car – After Bankruptcy Discharge
It’s a common misconception that after filing for bankruptcy that you’ll never be able to purchase a car again. You may not be able to find anything other than yesterdays news because your ability to get a car loan. It is true that people who have filed for bankruptcy usually choose to buy used cars. There is the powerful allure of a convenient and speedy exchange of cash to avoid extended payments and higher insurance rates. Despite the immediate gratification, one should consider the simplicity of rebuilding credit through car payments after bankruptcy.
The truth of the matter is that next to anyone can get a car loan. Many people would be willing to lend you money, crooked or not. For them it is a win/win situation, after receiving your notification of discharge you can be sure to receive letters from all types of lenders who want to offer their services. However one should test the water before jumping back in with both feet. A major advantage in buying a car after bankruptcy is doing business through a dealership. There is a greater understanding of quid pro quo in dealerships. Finance should come easy after you and the dealer have a mutual goal. A dealership might be a little more lenient after all you want to buy a car, and they want to sell one.
Taking that into consideration dealerships usually have experience and various lenders they work with. The lenders that work with theses dealerships may be more willing to work with you. You may be able to cherry pick between lenders due to the advice and word of a trusted middleman. That’s not to say that you can’t trust other sources of lending it’s often seen that credit unions are more than willing to make loans for the bankrupt but only if they appear to be on the “right track”. Community banks might be another good place to try because of the familiarity factor. But the reality of the situation is that you will likely find satisfaction while working with Car Dealerships.
Before you go on your merry way to apply for some credit to get your car, you should do a couple of things starting with establishing credit. It is important for lenders to see that you still under the concept of lending. Start small, with purchases that are a necessity for example groceries. That way you won’t forget to about making your payments. Search for deals, before just settling for any car because it is appealing do some research. You may often find with a little more research you can get the same model car for cheaper. You may also find many rebates that can help put a little cash back into your pocket yet most of them don’t last long so it pays to be vigilant and attentive.
It also pays to have a clean driving record. The cleaner the better, having an intact driving record suggests responsibility and pride. It also makes dealers and lenders more comfortable with the fact that their collateral (your car) wont return as damaged goods and harder to sell. So try to keep a clean driving record to secure a loan and better relationship with lenders. Many consider the task of buying a car after bankruptcy near impossible. However if you take into consideration this bit of simple advice this might make driving again a real option. You don’t need to settle for less if you are willing to put in the work and dedication.