Getting Approved - Car Loan After Bankruptcy in Seattle

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If you're living in the Sea-Tac area and you're dealing with the aftermath of either a chapter 7 or chapter 13 bankruptcy, you're not alone. In the past twelve months there have been over 8,000 people in the same boat as you, and there is a way to get back on your feet financially.

While you may need a lot of things in life after bankruptcy, a car is essential. You need to be able to get to and from work, take the kids to school, and see all the north Seattle attractions like the Henry Art Gallery, the Seattle Aquarium and the Woodland Park Zoo.

Bankruptcy will leave you with poor credit that can make it difficult to secure a reasonable auto loan, but here at Auto Credit Express, you can still obtain vehicle financing that will allow you to purchase the car, truck, or SUV that fits within your budget. We work with a network of dealerships around the Seattle - Tacoma area that specialize in helping customers with past or present bankruptcies get back on the road with affordable car loans after bankruptcy; which means if you live near Federal Way, Des Moines, West Seattle, or anywhere else in King County, we can help!

Obtaining Auto Financing after Bankruptcy in Seattle

Traditionally, when you've needed a new car, and were planning to finance it, you would have simply walked onto any car lot and filled out an auto loan request form. However, when you have a bankruptcy and your credit score needs repair the process is a little different. Most traditional dealers around Washington won't touch a customer with a bad credit history due to the high risk they pose, but this is where a subprime dealer comes into play.

A subprime dealer is a dealership that offers auto financing to people with bad credit, no credit, or a history that includes bankruptcy or repossession. These are the dealers we work with at Auto Credit Express. They don't judge you on your past, but instead, offer you a way to rebuild your credit scores with a bankruptcy auto loan. We are committed to helping the residents of the Seattle area connect with these low credit dealerships, and start the next chapter in life after bankruptcy.

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Getting Off the Bankruptcy Ferris Wheel

The unemployment rate for the Seattle-Tacoma-Bellevue metropolitan area is sitting at 5%, which may not sound like much, but if you are one of the five percent, you would surely disagree. No one enjoys scrambling each month to pay bills and put food on the table, and even worse, if things don't improve, many of these same people will have to file for bankruptcy.

Bankruptcy is a long and stressful process that no one looks forward to, but at Auto Credit Express, we understand that sometimes it's your only option. This is why we make getting a car loan during an open Chapter 13 or Chapter 7 bankruptcy case an option for you. The process of open bankruptcy auto loans is tougher than it is with a discharged BK, but it is possible with our dealers.

If you're still going through the process of bankruptcy and are thinking about buying a car, here are some things you need to know before requesting an auto financing:

  • Your 341 meeting must be taken care of before a lender will even consider you (in Chapter 7).
  • You must submit a Motion to Incur Additional Debt and receive an authorization from your BK judge (in Chapter 13).
  • Most lenders will require a down payment.
  • Your interest rate will be higher on an open bankruptcy auto loan compared to traditional auto loans.

Buying a vehicle while in bankruptcy is a big decision, and doing it wrong or forgetting a step could be considered fraud by the bankruptcy court. Be sure to discuss the process with your trustee before taking the first step.

Down Payments and Interest

If you've recently been discharged from your bankruptcy, it's likely that you don't have cash on hand for a large down payment. This isn't a problem for many of the auto dealers in our network. However, if you don't have a cosigner on your loan, there may be a low down payment of $500 required, but this is much better than the 20% to 30% that most other lenders in the area might require.

Auto loan terms generally depend on your credit profile, and if you have a bankruptcy on your report, your credit scores won't be in the best shape. This means that the interest rates you'll receive will be higher than you would get with a good credit score. If this makes the monthly payments too high for you, you can stretch out your loan term to make them cheaper. Having a cosigner with a good credit score will also get you a better rate on the car loan.

Starting your bankruptcy recovery process is simple with Auto Credit Express. All you need to do is complete our quick, easy and secure loan request form. We will then match you with one of the many Seattle subprime dealerships in our network, and you could be driving away in your new car tomorrow!

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as of 07/22/2024