Los Angeles isn’t always as glamorous as it’s made out to be. Sure, Hollywood is there and countless celebrities live in the greater Los Angeles area, but not everyone enjoys the life of luxury. Many Angelenos end up filing for bankruptcy and losing their vehicles. It isn’t easy getting around LA without a car, so where do you go for a vehicle if you're in a bankruptcy?
Car Dealers that Deal with Bankruptcy in Los Angeles
All hope isn’t lost if a bankruptcy is listed on your credit reports and you need a car to get around Los Angeles. You can typically still get the financing you need – the key is to work with the right lender. There are two options for you to consider if you filed for bankruptcy and need an auto loan:
A subprime lender
Subprime lenders work through special finance dealerships. These lenders specialize in helping consumers with bad credit due to bankruptcy, or other unforeseen circumstances, get a second chance car loan. To qualify for an auto loan, subprime lenders look at your credit score in addition to requiring these things:
- Proof of income – A recent computer-generated pay stub showing year-to-date income. Most subprime lenders ask for a minimum income of $1,500 to $2,000 a month before taxes.
- Proof of residency – A recent utility bill in your name at the address listed on the application.
- Proof of a phone – A recent phone bill in your name at your address. It can be a landline or contract cell phone.
- A down payment – Most lenders require at least $1,000 or 10 percent of the vehicle’s selling price, whichever is less.
You may also want to have a cosigner on hand just in case. Not every lender requires one, but a cosigner can help you get approved for financing if you have bad credit and you can’t get financed on your own.
A buy here pay here dealer
Another type of dealership that can help consumers dealing with bankruptcy is a buy here pay here (BHPH) dealer. These dealerships are also the lenders, which means they can finance your loan and sell you a car all in one place, in many cases in the same day. What makes these dealers great for credit-challenged car buyers in LA is the fact that they don’t run credit checks. So, a bankruptcy on your credit report isn’t going to affect your approval odds at a BHPH dealership. Instead, they look at your income, down payment amount, and sometimes your residence stability, for approval.
Looking for Auto Financing in the City of Angels?
Dealing with bankruptcy isn’t fun, and it can set you back on buying large-ticket items, such as a vehicle. The good news is you don’t have to go carless if you filed for bankruptcy.
No matter if you live in West Covina or Santa Monica, we want to help you get connected to a local dealer that can get you the financing you need. At Auto Credit Express, we work with a coast-to-coast network of special finance dealerships that have the lending resources to help people in all types of situations, including bankruptcy. Getting started is easy, simply fill out our free of cost and obligation auto loan request form, and we’ll get right to work matching you with a dealer near you.