Getting a car is one of the most expensive purchases a person can make. Even with a good credit situation, there can be a lot of anxiety about an automotive purchase. However if you're recently recovering from a bankruptcy the process can become a lot more nerve wracking.
Many people, after having their financial lives blown up by bankruptcy, are understandably concerned about making any more mis-steps. One of the biggest questions we get asked is 'who are the best bankruptcy lenders?' and that answer can change quite a bit depending on your circumstances!
Understanding Bankruptcy Auto Lenders
The first thing to figure out is what is your bankruptcy status like, and who in your area is willing to give you the best rate or terms? National chains like big banks might be good options for people with clean credits but not so much for people with a bankruptcy. Instead, local options will be your best bet, and that can very much state to state, and place to place.
The state of your bankruptcy can matter to lenders to. While some maybe comfortable talking about terms for an auto loan after bankruptcy, that same dealer might be less comfortable dealing with you if you are still in the middle of filing. Generally, you will get better options after the bankruptcy then in the middle of one.
The second thing to figure out is what sort of terms are you signing in for. You may think every dealership has the same process, but it wouldn't be accurate. Depending on the dealer, they may track the cars location with GPS, install an automatic kill switch, or simply repo the car at the drop of a hat. While nobody may enjoy a paying a late fee, its a better option then having your car repo'ed for being only a day late.
The third is probably the most important part of finding the best bankruptcy auto lenders in your area, and that is do they report your positive payments to the major credit bureaus? After all, the most import part of a car loan with bankruptcy is to recover your lost credit rating and get a better loan next time. If your lender isn't helping you improve your score, are they really helping you that much?
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.
