Auto Financing During Bankruptcy
It’s bad, but not all bad…
You might think that bankruptcy is the death sentence for all your intentions of getting auto financing. While you may have a point as bankruptcy doesn’t exactly make you the favorite person of the financing companies, the actual situation is not that bad. You can be bankrupt and still have a reasonable chance of getting an auto loan.
What bankruptcy does is demand more intelligence and hard work from you. Make no doubt about the fact that you will have to sweat more and think faster to get an auto loan than if you had not been bankrupt. But also don’t doubt that you can get an auto financing deal during your bankruptcy.
With proper guidance (that we give you) and patience, you can be driving your own car before you get out of your bankruptcy. Just be mindful of a few things.
Approach Car Brokers
Car brokers are often willing to give out bankruptcy car loans. These people are aware of the fact that bankruptcy can happen to financially responsible people as well. They are sensitive to your needs and financial position. They will do everything they can to get you a good bankruptcy auto loan that you can afford.
Explain your Bankruptcy
In the course of searching for a bankruptcy auto loan, you will be talking to various auto financing professionals. While being bankrupt doesn’t endear you to them, you should know that they are human beings who will understand and respond to reason.
If you explain to them that your bankruptcy is not because you were irresponsible with your money, you may convince them that you are financially responsible and hence eligible for a bankruptcy auto loan. Emergencies like serious illnesses, business set backs and other unforeseen and unavoidable disasters can push many responsible people into bankruptcy and these auto financing professionals know it. So you can explain your bankruptcy and win them over to believe in your ability to manage your money well and afford the loan.
If you were able to pay off all or part of a loan during or before your bankruptcy, highlight this action as this shows you are very responsible regarding the debts you owe to other people.
Don’t blindly accept the first offer
One great mistake that many people make when looking for an auto loan during bankruptcy is blindly accepting the first offer that comes their way. While they are understandably desperate, you must realize that you can get good deals even during bankruptcy. So be patient and you can find yourself driving a new car without paying hefty monthly installments.