Going through the bankruptcy process can be stressful, and oftentimes, leaves people unsure of what they will be able to achieve financially after it is complete. And since an automobile purchase is one of the most common - and necessary - big purchases for consumers, this can make one feel even more uncertain of their future.
When you are discharged from a Chapter 7 bankruptcy, you are essentially starting with a clean slate, aside from the fact that you will have a black mark on your credit report from the filing for 10 years, potentially making it hard to find a lender who will approve you. However, if you did have previous auto loans that were in good standing or have paid off a vehicle since you filed your Chapter 7, you will have a better chance of getting approved by a lender. You just need to make sure you are working with a car dealership that has a financing team that knows how to work with unique financial situations.
Those who have just recently completed a Ch. 7 filing will start getting credit offers only weeks after a discharge. However, if you are still struggling with a low credit rating, it may be best to wait a year or so before applying for another auto loan. Use that time to rebuild your credit through a secured credit card or other lines of credit. But you should know that there are options for car buyers who don't have time to wait.
Car Dealers That Work with Chapter 7 Bankruptcy Buyers
First of all, you will need to make sure you have all of the necessary paperwork ready to show the dealer and the lender. This means that in addition to standard requirements, you will need to have your discharge papers from the court ready.
Secondly, you may want to consider a Certified Pre-Owned (CPO) vehicle for your purchase. Until you have a stronger credit history, you will want to prepare yourself for higher interest rates on auto financing. But, by working with a qualified dealer, you can increase your chances of getting the best interest rate possible for your situation.
Use Our Network to Your Advantage
Auto Credit Express has a nationwide network of car dealers who specialize in getting car buyers who have gone through bankruptcy back into a reliable car, truck or SUV. When you complete our fast, secure and obligation-free online application, we will connect you to the nearest local area car dealer that can help you achieve your goals. Start today.