Applying for Post-Bankruptcy Auto Loans: Infuriating, But Not Impossible

If you are looking to buy a car for a strictly functional purpose and not as an investment, a used car is the right choice. Why?

Filing for bankruptcy is the clearest declaration of financial trouble. It fills your schedule with a tedious court process and your credit rating takes a hit. It is an ugly mark which does not go away easily. Also, it means you will have trouble getting an auto loan.

Types of Bankruptcy

You can file for either a Chapter 7 or a Chapter 13 bankruptcy. A Chapter 7 bankruptcy entails that you have little or no money, and your capacity to pay back debts has been seriously hurt. A Chapter 13 bankruptcy encourages reorganization. The court comes up with a plan for you to comfortably pay back your debt based on your current income.

Stigma of Bankruptcy

A chapter 13 bankruptcy stays on your credit report for 7 years. But, if you have filed for chapter 7 bankruptcy, it will remain on your credit report for a decade. Lenders understand that bankruptcy will leave a stain on your credit score for a very long amount of time.

They understand that even though bankruptcy means rough conditions, it does not completely erase your ability to pay back an auto loan. In fact, if you successfully battle and come out of bankruptcy, it is seen as an example of your resolve and strength.

Practical Tips

1. Have Realistic Goals

Do not expect to qualify for huge auto loans right after completing bankruptcy. The most practical way is to select a car that is not unreasonably expensive. Get a co-signer, a parent or a spouse/partner preferably, and be confident while pitching the idea to them. Present the lenders with proof of the co-signer’s financial stability and good credit score.

2. Gainful Employment

Lenders find it extremely reassuring if you have a steady job at the time of loan application. Even if you have filed for bankruptcy, knowing that you make a firm amount of money regularly and that you are gainfully employed makes it more likely for them to trust you with the auto loan amount.

3. Spending Decisions

Take an honest look at the reasons you had to file bankruptcy in the first place. If you have an uncontrolled spending problem, try to consciously spend less money and use it only on necessities. Make a budget and stick to it for your own well-being.

4. Pay Attention to the Details

If your application shows a clear sense of financial responsibility on your part, lenders will have fewer issues with the auto loan and the interest rate. Lenders charge a high rate of interest on a post bankruptcy auto loan because it has a higher risk associated with it.

All this goes to say one thing: be careful while applying for a post-bankruptcy auto loan. Be honest with the lender, plan out in advance, put forth a strong case, and consider all the conditions before agreeing to take the loan. It is infuriating but it is not impossible.

With FastAutoLoanApproval.com, getting a post-bankruptcy auto loan becomes easy and affordable. Do not worry about your credit history. The company will find you low rate fast auto loans and ensure that you buy the car of your choice quickly. Apply now.

Certified Dealer: Why is it the Go-To Option for buying a Used Car?

If you are looking to buy a car for a strictly functional purpose and not as an investment, a used car is the right choice. Why?

One of the reasons why more people are buying used cars is the freedom from the worry of that first parking-lot dent or the fading sheen of its doors. You simply have to drive the car you bought and not worry about its depreciation like you would have to if it was a new car. You can buy used cars from two sources primarily:

1. Certified dealers

2. Private party

Private Deal isn’t always a Good One

A private party could be anyone from a family member to a colleague to a person you ran into on the street. It means anyone who wants to sell their car. You may think of choosing to go this way to save a few bucks because buying a used car from a private party is cheaper than buying it from a certified dealer.

But, buying from a private party does not guarantee a trouble-free experience. It involves too much risk because of the following reasons:

>> You may end up with a stolen car.
>> The warranty, if you’re given any, may not really be as assuring as offered by a certified dealer.
>> The odometer may not really show the exact number of miles the car has traveled.

Trust and Safety

The least you deserve when you pay with your money is good product and peace of mind regarding the purchase.

A certified dealer, apart from being a trustworthy option to buy your car, will often give you great deals on roadside assistance and maintenance. He will also provide you with an extension in the warranty. Safety is a priority with dealers. If the car you buy from them is in need of a new part, they will help you to replace it with only genuine parts.

Smart Buy

It does not mean that you need not be cautious while walking into a certified dealer’s lot. A dealer is running a business, so to cater to as many customers as possible; he may try to rush your decision. And, he may pressure you into buying a car that you do not really want to buy. You need to remember that the buying power rests with you. And, you should only buy a car that you like.

In going to a certified dealer, the biggest risk is getting a car you did not really want. You can avoid the risk by being aware of your options and having an estimate ready in your mind. If you know exactly how much money you want to spend on a car, the purchase becomes easy.

Research

You can always refer to NADA Guides and Kelley Blue Book in order to get the right price for a used car in your area along with other information for any model that you want to buy. Researching on your own before you walk into a dealership is never a bad idea.

If you go into the dealership already aware of the expected warranty and cost of the used car model you want to buy, you cannot make a wrong decision. Choose a certified dealer, work out the specifics, and you will have a car which will last a long time in your care.

A used car is a great choice for car buyers who are looking for an affordable auto purchase. You can opt for used car dealership financing and buy a reliable used car without down payment. Apply with FastAutoLoanApproval.com to enjoy incredible loan options such as bad credit no money down auto loans.