Anyone that has ever filed for bankruptcy has most likely at one point considered buying a car after bankruptcy. it may seem like a difficult problem, but it can actually help you rebuild your credit score and better your financial situation. The real problem is, where do you find a lender in New Mexico that will finance you? You have two options: subprime lenders or buy here pay here (BHPH) dealers.
Bankruptcy Auto Financing Lenders in New Mexico
There are two types of lenders most willing to work with clients with poor credit due to a past (or present) bankruptcy.
1. New Mexico subprime lenders represent the first option. These lenders specialize in bad credit auto loans and allow these bankruptcy clients to borrow money at a higher interest rate than the standard. Unfortunately, because of the credit score being under-prime and the recent bk the debtor is then considered a high risk and has a higher potential to default on the loan.
While these loans may not come with the most favorable terms they are one of the best ways to rebuild your credit after bankruptcy because these lenders report to the credit bureaus. As long as you make your payments on time you credit score should increase accordingly.
2. The second choice is to go through New Mexico BHPH dealer. These are dealerships that offer in-house financing to just about anyone that will walk onto their lot. Typically there is no background or credit check, which is what, draws bad credit and bankrupt clients in. Unfortunately, some of these dealerships are not the more reputable and can hurt you more than help you.
Many BHPH dealers in New Mexico don’t do a credit check, but that also means they most likely won’t report your payments to the credit bureaus. That means even if you make your payments on time your credit score may not reflect it. The other major draw back is that most in-house financing dealers require weekly or bi-weekly payments to be made at the dealerships; and if you happen to miss a payment they will repossess or turn the vehicle off – often times the cars come equipped with a GPS that allows the dealer to know where the vehicle is at all time and also allows them to cut the power to the engine off.
Find a New Mexico Lender
Looking for a lender in New Mexico that will finance a car to you may seem like a big hassle, but it doesn’t have to be. You have the opportunity to apply with many lenders at one time to amplify your chances of an auto loan approval.
Here at BankruptcyAutoFinancing.com we have a network of NM dealers that accept bankruptcy clients and have the tools and experience necessary to get you into a car note that fits your budget. Apply online now to see what you could be qualified for.
Remember, we are not lawyers and cannot give legal advice. The situations discussed are only our experiences over the years and may vary with each customer.