How to Get A Car Loan After Bankruptcy
Just because you have suffered a bankruptcy doesn't mean you can't borrow money. There's a lender for anyone's financial situation, and bankruptcy car loans are no exception. If you are looking to buy a car and you are in the process of declaring bankruptcy or have previosly declared bankruptcy go ahead and get rate quotes from a few lenders just as you would if you had no financial strain. Don't let yourself worry that you can't get a loan and then accept the first loan any lender offers you, because you could end up with unfavorable terms. Not only is it not in your best interest to accept a higher rate than you could find if you really looked, but the higher rate puts you at greater risk of default because of course you are paying more every month.
Not all bankruptcy is created equal, either. If you had a good credit history prior to your financial crisis and if it was precipitated by events completely out of your control, such as loss of a job or a medical emergency, it is easier to find lenders. If you are filing for bankruptcy, which many people do in order to keep their assets, it can take five years to get through the whole process and most people will need to buy a car in that time frame. A plus for you is that a car is an asset that can be used as collateral for the loan, and so it's a good way to start building your credit again.
Since you probably don't have a lot of money to spend on loan payments, it is realistic to buy a used car. Make sure that the car is in good shape and doesn't have excessive mileage, because you don't want costly maintenance bills while you are still making payments on the car loan. Focus on transportation you know will be reliable at a price you can realistically afford.
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