Determining how much of a car loan you can afford is not always easy, especially if you have filed bankruptcy. There are many factors that lenders will consider. Knowing what these factors are before heading to the dealership will make the car loan process easier.
What Factors do Lenders Consider for Bankruptcy Car Loans?
The factors that lenders consider for bankruptcy car loans are going to be slightly different than for traditional car loans. This is because the status of your bankruptcy is going to be important. The factors that lender will consider include:
- Did you file for Chapter 7 or Chapter 13 bankruptcy?
- Is the bankruptcy open or discharged?
- Have you had a repossession in the last year that was not included in the bankruptcy?
- What is your credit score?
- What is your monthly gross income?
- Do you have a down payment?
- Do you have a cosigner or co-buyer?
- How long have you been with your current employer?
Having the answers ready before you head to the dealership will make a huge difference. You may want to bring along any supporting documents that you have, so that you don't have to return to the dealership multiple times. This can slow the process down, and if you find a vehicle that you like it may be gone when you return.
Preapproval Makes it Easy
Getting a preapproval makes it easy to get an auto loan after bankruptcy. You'll arrive at the dealership already knowing how much you can borrow. By using this approach you won't run the risk of falling in love with a car that you can't afford.
Here at BankruptcyAutoFinancing.com our network of car lenders after bankruptcy can get you preapproved quickly and easily. You may even be able to drive away in a new-to-you car the same day you apply. To get started, submit our quick and easy application today and we'll match you with a local dealership that will give you the best rates possible.
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.