Getting a Car Loan After Bankruptcy
You've had to declare bankruptcy - but that doesn't mean your needs for big-time purchases have been put to an end. If you need to purchase a car - and you have the mark of bankruptcy on your credit score - it's easy to think that a dealer or lender will not let you borrow any money to purchase a car.
Here's the good news: thanks to the long-lasting effects of the Great Recession, more dealers are catering to consumers with less than stellar credit, since the majority of the population has had their finances adversely affected in one way or another. While having a bankruptcy on your credit score means you will be considered a high-risk borrower, there are different avenues that you can take to secure that loan.
Here's what you can do to ensure that you drive off that lot with a new car:
Look For Special Deals
Even if you have a lower credit score as a result of a bankruptcy, when it comes to buying a new car, the fragile economic climate is definitely working in your favor. Since dealers are finding it difficult to move cars off of their lots, they're more lenient with any requirements they may have for making a loan. Nowadays, all you may need is proof of employment and a deposit in order to secure yourself that brand-new car.
Don't Take The First Offer
Once upon a time, potential car owners who've filed for bankruptcy in the past had to take the first offer that dealers put on the table, given the availability of clients with good credit. Now that the market has shifted considerably, you don't have to accept the first offer you receive just because your credit rating is not 700.
Shop around for the best offer, and don't just limit yourself to dealers - private lenders in Dallas may be willing to lend to you, which means that you'll have more competitive offers to sort through. An important note to consider: don't get caught up in the excitement of getting a loan offer, since this can often cause you to overlook the finer details.
Entice Dealers With A Large Down Payment
If you have particularly poor credit, you can still get yourself that car loan by offering dealers a large down payment on your new car. A large down payment can convince dealers that you're serious about paying for your car on time. Additionally, a large down payment shrinks the amount of credit that lenders are risking by giving you a loan - which means that your application for credit will be much more successful.
Get A Co-Signer
If you really want to show lenders and dealers that you're financially responsible despite your credit score, then consider having a friend or relative with an excellent credit score acting as your co-signer. A co-signer with great credit will make lenders feel much more comfortable about lending to you, since it's likely that they won't lose their money by taking a chance on you.