Getting a car loan after bankruptcy can be one of the best ways to rebuild your credit; however, finding the right car for your family may seem like a daunting task. You want a safe car that will get your family to all of the places that you need to go, and be within your budget. By doing a little research ahead of time, you can find the vehicle that will fit your needs.
Research Realistic Vehicle Choices
When applying for a car loan after bankruptcy, you want a vehicle that will get your family from point A to point B, so it’s important to be realistic and keep an open mind. Consider buying a less-popular car model that gets good mechanical and safety reviews through an organization such as the National Highway Traffic Safety Administration (NHTSA). These cars often cost less than their more popular counterparts, although sometimes they may lack a few of the bells and whistles.
You may even be able to get a good deal on an “ugly” car because the dealership wants to get it off their lot. Although you may not like the paint color, or body style, there’s nothing wrong with these cars. Just like with any other new vehicle, having a down payment of 10-20% can be beneficial because it means less risk for the lender.
Consider a Used Car
Because of your financial situation, it’s important to buy a reliable car for your family, and may want to consider a recent model used car. You don’t have to settle for paying cash for a beater, which can cost a fortune for repairs down the road. A good used car can hold its value while promising years of solid service.
Many recent-model used cars offer excellent fuel economy, which will be a great savings for your family. A “Certified Pre-Owned” car can even come with the advantage of a warranty. Here at Bankruptcy Auto Financing we work with subprime lenders who specialize in bad credit bankruptcy auto loans, and can help get you into the right car for your family.
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.