Get a car after chapter 7 bankruptcy
Filing for bankruptcy does not mean that your chances of ever getting bankruptcy car financing is over. Whether you filed a Chapter 7 or Chapter 13 bankruptcy, it is still possible to get into the car that you need. Applying for an auto loan through a credit union or a bank is an option. The other option is to seek out a private lender or a dealership that offers special financing to those with damaged credit. Before applying with a credit union or a bank, there are some things to keep in mind. You are now considered a high risk borrower. A high risk borrower someone who has not been successful in paying back a loan obligation for one reason or another. Most banks and credit unions do not want to work with high risk customer s, as the liability and chances of defaulting payments are too high for them to chance. In general, your individual story as to why you filed for bankruptcy and why you were unable to meet your previous loan obligations does not matter much to them. There are better lending options for you.
Seeking out a lender or a dealer who offers "buy here pay here" or "buy here lease here" options is often your best bet. These lenders do take into consideration your special circumstances and will work with you to create a payment schedule that works with your current financial situation. You will most likely not be able to purchase or lease a new car until you have proven yourself as a reliable loan candidate. You will be offered a selection of used vehicles to choose from and then financing for your chosen vehicle will be determined. Usually a Global Positioning System (GPS) unit will be installed in the vehicle to allow them to keep tabs of the automobile as well as locate it should payments begin to default.
Your payments and loan rates will be higher than the traditional customer who does not have damaged credit. It is recommended to secure your financing with a dealer or lender first and then look for a vehicle. This allows you to work out what your monthly payment will be and chose a vehicle with a price that conducive to your achievable monthly payment amount. Rate on average will be above 15% so searching for a car that truly fits into your budget is wise.. It is not recommended to overextend your credit when looking for a second chance from a dealer or lender.
Finding a place from where you can locate all dealers and lenders in your area is the best way to get a chapter 7 bankruptcy car loan. There are websites who have relationships with dealers and lenders and all you have to do is apply from one place and you will be contact by a prospective lender. Financing for those with bankruptcy is not impossible. It just takes the right frame of mind to search out your options to find the one that is best suited to your current financial situation. You can get into a car again, with better piece of mind.
Find a new or used car to love.