- Free Consultation: (202) 448-5136 Tap Here To Call Us
Getting Approved for a Car Loan After Bankruptcy
Getting approved for a car loan after bankruptcy can sometimes be a bit tricky. But it happens every day, and you can do it too if you follow the steps below.
As of November 2016, six million Americans have stopped paying their car loans. So far this year, a record 32% of all vehicles offered for trade-ins at U.S. car dealerships are under-water. That means that more consumers than ever are trading in vehicles that are worth less than what they owe.
Don’t be just another statistic. Avoid the traps and take the following advice to get approved for a car loan after bankruptcy.
Do Your Homework
After bankruptcy, the first vehicle you finance will inevitably have a higher interest rate. First, check out Bankrate’s simple auto loan calculator. Determine, based on your income and expenses, what you can actually afford to pay. Try not to exceed 15% of your income, and keep the term to 36 months. Don’t set yourself up for failure. Purchase a vehicle you’ll be happy with, but also one that you can afford to keep.
Make sure, too, that you have enough money for a down payment. The larger the down payment you can afford, the lower the interest rate you will obtain. Keep in mind that you will need to pay taxes, in addition to title and license fees.
Shop Around
You will find that there are many, many lenders willing to offer you car financing after bankruptcy. That’s why it’s important to shop around. They are in competition with each other for your business. Use that competition to get the best deal.
Check the listings in the phone book and make some calls. Sometimes, you may want to make as many as 15 to 20 calls to get a good deal. Let the representative know up front that you have a recent bankruptcy discharge. Then ask them, in a frank but friendly way, if they will finance you. Find out what rates they may offer you before you plan a visit to the dealership. If the rates are too high, move on to the next number. Keep a list. Be ready to walk away from a deal.
Getting Approved for a Car Loan After Bankruptcy
When you apply for financing, the car dealership will not just look at your overall credit report. They will specifically evaluate your auto loan history, too. The dealer will factor into their decision not only your previous auto loan payment history. They will also look into whether you kept or surrendered your vehicle in your bankruptcy.
Resist the urge to ask a friend or family member to cosign for you. While you may obtain better rates with a cosigner, having a cosinger helps rebuild your credit more slowly. Your on-time payments may help your cosigner’s credit a little, but it will help you much less.
Keep a level head, shop around for a good deal, and be ready to move on if you’re not happy with either the vehicle or the loan terms. You will get approved for a car loan after bankruptcy, but don’t just jump at the first financier who extends you credit.
They Called. They're Glad They Did.
Brian Lee from Lee Legal was an amazing attorney to work with. He took his time, reviewed my documents and we discussed my situation thoroughly. He explained the process and my options as well as gave his recommendation. Not only did he assist, but he ensured that I knew this...
Brian handled a legal matter for me and he was fantastic. He kept me informed of all updates and resolved all issues that were presented. I highly recommend Brian to all seeking legal advice and services.
I was very nervous and scared about going through this process. But Brian was very knowledgeable and helped me through it. I was notified about any and all updates to my case and he was very responsive when I had questions regarding any concerns I had. Although a bit nerve...
I've had the pleasure of working alongside Brian V. Lee for several years, and I can say without hesitation that he is one of the most knowledgeable bankruptcy attorneys in the DMV area. Brian's command of Chapter 7, 11, and 13 practice is exceptional, and his clients in the DC...
I wanted to share my sincere appreciation for Brian and the support he provided during a very difficult time for my grandmother. We were not wealthy, but Brian treated us with genuine kindness and respect, making sure we felt comfortable throughout the entire process. He took the...
Still several years from Public Service Student Loan Forgiveness and saddled with significant student loan payments in proportion to my income, I came to Lee Legal to explore the bankruptcy path. Through his counsel, Brian took the fear out of the process and helped me to...
Brian provided me with a very detailed analysis about my potential case after our first consultation. He promptly responded to all my complex questions, especially navigating student loans and some tax discussions. He is very professional and experienced at what he does, I would...
I had the opportunity to work with Brian at a time when I was challenged by a professional setback and forced with the challenge of making some very difficult legal decisions. Additionally, I worked with him again as I was dealing with some financial issues pertaining to my...
Brian has the amazing talent of taking complicated legal matters and distilling them down to seamless, frictionless resolutions. He is a phenomenal problem solver and a trusted advisor.
I came to Mr. Lee in a panic when I was experiencing health problems and the walls seemed to be closing in on me. Initially, I interviewed four attorneys seeking assistance with my situation. He was one of the most thorough and thoughtful people I’ve ever met. His kindness and...
Brian is both warm and professional. He helped me navigate a financial issue that I had not been looking forward to working on and he made the entire experience non-stressful, receiving a lot of anxiety I had around the matter. He is straight forward and a fantastic problem...
Brian is an amazing lawyer. He was referred to me by a friend who was also pleased with his work. I found him to be affordable, efficient, understanding, and easy to talk to. He really cares for his clients and is very committed to doing his best. He is very knowledgeable and...
This is your last stop in your searches for an attorney. After numerous research and interview with many lawyers, I decided to hire attorney Brian Lee. He is extremely knowledgeable, personable, attentive and diligent. He went above and beyond to file my ch 7 bankruptcy and get a...
