In our business we often have clients ask us, “Can I get a car loan after a bankruptcy?” It seems that we have more and more people asking this same question now days. The answer to that question is yes, you usually can get a car loan after a bankruptcy.
It all depends on your personal circumstances. Every person and their bankruptcy is different and needs to be approached that way.
Due to the increasing demand, there are many lenders who will offer a subprime car loan to help those who are in need begin to rewrite their financial history. In fact, securing a car loan after a bankruptcy is a great way to begin the ascent toward a higher credit score.
Let’s investigate a couple solutions to help you answer yes to the question “Can I get a car loan after bankruptcy?”
Begin by locating a couple different subprime lenders through local dealerships. Because not all dealers offer special financing, ask this up front when you call the dealership. The following tips can help you speed up the process of getting a car loan.
Prepare For Your Visit
After an interview I conducted with an auto consultant that specializes in helping people find car loans after bankruptcy, I learned it could be helpful to prepare for your visit. Nancy explained to me that getting pre-qualified can help her tailor-fit an auto loan to a person’s specific car-buying-DNA.
Nancy suggested to collect the following pieces of information before taking a trip to the dealership.
*Proof of Identity – Bring a current state issued driver’s license.
*Proof of Income – Bring a couple of your most recent pay stubs.
*Proof of Insurance – Bring with you your current insurance card.
*Proof of Residency – Bring a couple utility bills in your name with your current address on them.
Take A Visit To The Dealership
Now, you are prepared for your appointment. Go meet with the expert auto consultant, present your information and begin a discussion on the type of car you are looking for. An added bonus working with an auto consultant is that because they care about your specific needs, they will do all they can to find a car that suits you. This is better than being given a choice of having only three cars to choose from.
Consider a newer model car that has lower miles. A slightly used car can save you hundreds to thousands of dollars by avoiding the immediate depreciation that comes with new cars.
Ask to see a history report on the vehicle. You want to see a Carfax or AutoCheck report to see if there were any previous problems with the vehicle. Next ask to see a safety inspection report to ensure the vehicle is safe for you and your family.
Being prepared and working with someone who is an expert can help you answer, yes to the question, “Can I get a car loan?”