How to Finance a Vehicle During Bankruptcy

Bankruptcy can be a tough thing. Depending upon the type of bankruptcy, you may lose just about everything. Financing a vehicle may not seem like the best thing to do at this point in your life, but it just might be. After all, rebuilding your credit score after a bankruptcy is vital. In addition, you may have had to sell your car to qualify for the bankruptcy. This may leave you in need of a reliable mode of transportation, and unless you live in a big city with good public transportation, the only way to go is with a car.

Instructions

Fiancing a Vehicle During Bankruptcy

1

Plan for rejection. When financing a vehicle during a bankruptcy, you will most likely be turned down by a fair number of creditors. Do not become discouraged if you are rejected for financing due to your bankruptcy. There are steps you can take that will assure creditors you are a good candidate for financing.

2

Have a significant down payment. If you can pay a significant amount of the total car price through your down payment, the creditor will feel more secure about the lease. In addition, if there is a significant amount down, the creditor can request that a portion of that down payment goes to purchasing insurance against the possibility of defaulting on the loan.

3

Buy from a dealer that guarantees credit approval. Banks who work with dealers that guarantee credit approval are used to handing situations where the buyer does not have perfect credit or is going through bankruptcy. Dealers know which banks to contact to give each customer the best chance of obtaining financing. In addition some of these locations will finance the vehicle themselves, increasing your chance of obtaining a vehicle.

4

Buy a used car instead of a new one. A used vehicle may be a better option because they are often cheaper than new cars. A vehicle that is slightly used often costs thousands less than vehicles that are new. This can help to ensure that the payments can be made in a timely manner. It is important to get a vehicle history report with any used vehicle that is purchased. This helps to ensure the quality of the vehicle being purchased.