Automobile Loans for Bankruptcy
You never thought that you would wind up declaring bankruptcy and need to finance a new car at the same time. However, we cannot always plan for what is going to happen, and this is just one of those things. When it comes to automobile loans for bankruptcy, what do you need to know and will you even be able to obtain a car at all?
Challenges with Financing and Bankruptcy
It's important to know that applying for any sort of loan is going to be a challenge when you are dealing with bankruptcy. This can largely apply to:
- Car loans
- Home loans
- School loans
- Lines of credit
Since you are in this financial crisis, you are a major risk to any type of lender. Therefore, before you look into bankruptcy auto loans, you should start to work on repairing your financial situation. Find out if any way exists to negotiate the debt as opposed to going into bankruptcy. If not, you can at least start to pay it off.
No Credit Checks
Again, obtaining an auto loan when you are bankruptcy is going to be a rather large challenge. As a result, you should look into programs that do not require a credit check at all. Usually, you can find these types of programs at buy here pay here used car dealerships or tote the note dealerships. The selection of vehicles at such places might not be the newest or contain the hottest automobiles on the market. However, you can generally find a vehicle that will work for you, at least until your finances are in order.
The Old Fashioned Way
Perhaps you really want to try to obtain a car loan the old fashioned way. Well, you definitely need to obtain a pre-approval from one of our lenders. Not going for the pre-approval is really risky when you are in such a tight financial situation. If you are pre-approved, then you can start to look at vehicles and take the statement to the dealership. In the event that you are not, consider trying to get pre-approved again, but this time, have someone act as your co-signer. A co-signer can make a world of difference in whether or not you are actually approved for the loan.
Being bankrupt is a serious situation, but it does not mean that your life comes to a halt. These tips can help you to procure a vehicle in a timely fashion.