People with a history of bankruptcy often make mistakes when it comes to car buying. Often people assume that they can't get financing or have unrealistic expectations. Today we'll talk about some of these common mistakes, and what to do instead.
Bankruptcy Car Buying Mistakes
There are a number of mistakes that you might make when it comes to car buying after filing bankruptcy. These mistakes include:
- 1. Assuming that you can't get a loan. Although you may be rejected by some lenders, it is possible to get a car loan after bankruptcy.
- 2. Falling for curbsiders. Curbsiders sell illegally obtained cars by pretending to be private sellers.
- 3. Using Buy Here Pay Here lots. These BHPH lots don't take your credit into consideration, and don't report your payments to the credit bureaus.
- 4. Not knowing how much car you can afford. It's important to know this before heading to the dealership.
- 5. Not obtaining vehicle history reports. These reports can tell you if the car has been in an accident or natural disaster, and alert you to title problems.
- 6. Not getting the car inspected. An independent mechanic can spot unreported damage and tell you what repairs it might need in the future.
- 7. Not discussing your plans with your trustee. If you're in open Chapter 13 bankruptcy, you'll need to get an Authorization to Incur Debt.
- 8. Being unrealistic. Sure, you might want a shiny new sports car, but you may have to settle for something else until your credit improves.
By being aware of these common mistakes you can easily avoid them, and purchase a vehicle that will help rebuild your credit after bankruptcy. This will make your financial future brighter by making it possible to get better interest rates for refinancing, or buying your next car or house. Better interest rates also mean keeping more of your hard-earned money, which will allow you to build an emergency fund.
Bankruptcy Auto Financing
Despite what you may think, it is possible to get auto financing following bankruptcy. Here at BankruptcyAutoFinancing.com we've made it easier than ever with our simple online application. When you fill it out you'll get an instant estimate of how much you can borrow.
One of our experienced auto loan specialists will review your application and contact you with your pre-approval amount. They will also connect you to a local dealership who works with bankruptcy clients. Just head to their lot, pick out a new-to-you vehicle, and get back on the road to financial success.
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.