After experiencing a rise in bankruptcy cases 2009 in Wisconsin one of the biggest questions we have been asked is “Should I finance a new car or used car after bankruptcy?” Well, we are here to tell you, that while new car loans in Wisconsin are available we recommend financing used cars after bankruptcy for a number of reasons.
Benefits of Financing a Wisconsin Used Car
Buying a used vehicle after bankruptcy offers many benefits that new cars do not; such as:
- Lower interest rates
- Slower depreciation time
- Lower insurance rates
- Lower down payment requirements
After bankruptcy your credit is less than perfect creating many different problems; higher interest rates, higher down payment requirements, and less lender options. Buying used instead of new will help with these issues, and luckily, there are many Wisconsin dealers that work with bankruptcy clients.
Rebuilding Credit with WI Used Car Loans after Bankruptcy
Since used cars generally have lower price tags resulting in a smaller amount to finance, you can typically pay them off faster. After making timely payments on your used car for two years your credit score should raise significantly. This will allow you a better chance at getting new car loans with bankruptcy on your credit history with more favorable terms.
If you are ready to start rebuilding your credit with a used car loan apply online today using out online application. We will send your information to our network of Wisconsin dealers near you to see which one will offer the best deal.
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.