Bankruptcy can lead to several problems in the future and the present. With the economy the way it is and the double dip recession, it is becoming more common for people declaring bankruptcy. However, if you do go bankrupt, and you need something such as buying a car that does not mean you cannot purchase a car. There are several methods to be able to purchase a car after bankruptcy. One option is not to buy a new car, but to buy a used car. Buying a used car can save you a lot of money. New cars are normally not cheap. A new car at the bear minimum with no additional luxuries could be as cheap as twelve thousand dollars. However, a used car can be very cheap, a couple of thousand dollars and sometimes even less. Another unspoken fact with purchasing a new car is once a new car has been driven off the lot, it looses a significant percentage of its paid value.
This could be money saved in your pocket if you had purchased a used car. Used cars can be found at the dealer, online, on the side of the road with a “for sale” sign, and almost anywhere that new cars are offered. There are even auctions. At an auction repossessed cars are sold for cheap prices. However, many times, auctions only allow the method of payment to be in cash and paid in full. This leads to an important question, what is the best method of paying the car off? A car loan is one such method. Banks, online services, and companies across the nation offer flexible terms with loans. If this is a path that you are seriously considering there is a caveat. You are the borrower when getting a car loan and many times the terms are not as beneficial to you as may be presented. If you decide to go online make sure not to get sucked into a scam. Make sure you understand the rates offered by the lender and all the paper work thoroughly. Yes, you want to purchase a car, and it could very well be a necessity, however do not put yourself in a vulnerable situation that will regress your financial situation.
Getting a car loan is an added finance. If you remain disciplined with the car payments and understand all the terms presented by the lender, you could kill two birds with one stone. A car loan with structured regular payments cannot only get you a car but can help in re-establishing your credit. Another option after no less than six months of making payments on time and in full is to refinance the car. After six months of disciplined payments your credit rating will improve at which point the rates for your car loan can decrease. This could help in making the payments easier for you. If for some reason you are hesitant that you may not be able to make even a single car payment down the road, car loans may not be for you. Another less risky method is paying with cash.
Saving up enough cash to pay the car off either in one lump sum or over several payments is a viable option. This may take some time to save, however, it avoids having to deal with your subpar credit. If the cash option is appropriate, you still must stay disciplined and not spend the cash elsewhere. There are several options that are available for purchasing a car after bankruptcy. Not all is lost after bankruptcy. The important thing is to figure out which option is best for you and to stay disciplined with the payment(s).