How to Get Car Financing For a New or Used Car Even After Bankruptcy

Monday, January 14, 2013

How to Get Car Financing For a New or Used Car Even After Bankruptcy



Have you just gone bankrupt with a dream of buying a new car for your family? Wondering how to turn your dream into a reality? You need not worry as there are numerous options available for your dream to come true. Obtaining a car loan just after a bankruptcy definitely seems to be a job which is full of hassles and stress. 

You may also avoid asking the lenders for loan as you are scared that you will be turned down! Fortunately, there is excellent news for people wanting to but cars after bankruptcy. Believe it or not but a report of your bankruptcy stays in records for more than 10 years and thus you may be wondering how to approach the lenders for a loan to buy a new or an old car. In order to get the loan approved you have to be tactical and calculative. 


A lender is ready to lend money provided that a borrower gives assurance that the money will be returned to him with interest. If you can convince the lender and assure him of the same, half of your job is done! Here are a few tactics of how to get a loan even after bankruptcy.

  1. Search for people who offer loan even after you are bankrupt.
People who have been in this loan business from a long time usually are diffident of lending loans to people who are bankrupt because it involves risk. So you can take help of lenders who are new into this field. Online lenders are also a great help in this kind of a situation. They lend loans to people with bad credit as well with an assurance that the money will be paid back.

  1. Be patient
It is obvious that people who have been bankrupt will be considered as a risk factor while lending loans. So the best option is to wait for a few months and then go ahead. People who lend loans knowing that you are bankrupt will usually charge a high amount of interest, knowing your weaker side. So wait and watch is the best option for you at the moment and you will definitely get someone to your rescue. Meanwhile, try escalating your credit rating.

  1. Buy a small car
A small car will require less amount of loan and less maintenance after you buy it. So a lender will not refuse the limited amount of money to you if you plan to buy a small car. So go for that at the moment.

  1. Show lenders that you have a stable job
If lenders see that you have a stable job where you would be able to maintain the loan even after bankruptcy, they would gladly lend you loan. So try and grab a good job and show them that you have a strong financial background. The lender will definitely offer you loans even after bankruptcy.

  1. Show lenders that you have a good reference
If you can show the lender that you have a good reference who would act as your co signer, getting a loan is definitely not impossible. He can be anyone from the family or friends. Be sure that he has a good credit rating.

  1. Make some down payment
You can gain the lender’s trust by making initial down payment before buying the car and taking loan. 10 % of the loan is just enough! See you get the loan in a jiffy if you need to finance a car promptly after emerging from bankruptcy.

These are the tactics by which you can get your car financed even after bankruptcy. Try it out and see your dream turn true! 

Author: Angelina Jennifer

2 comments:

Choose carloans said...

I was just thinking to get car finance for used car. I was some doubts in my mind but after reading this informative article my all doubts are clear.

Choose Car Loans

webbrowan said...

It is best for you to visit a dealership to get them to assist you to compare the car finance which best suits your means even after bankruptcy. Some dealers have in-store finance schemes which might be suitable for you or other plans with financial institutions that have different approval processes.

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