There are numerous companies who offer some very favorable terms on Car Loans, even if you are applying after Bankruptcy. Some of these companies will offer secured car loans, thus providing them with the peace of mind that their loan will get paid off no matter what. However there are more companies nowadays who will offer any form of credit for those with a troubled financial past, without you having to provide security.
Follow these essential tips when looking for Car Loans After Bankruptcy:-
1) Any form of loan after bankruptcy will have high interest charges. You may even be offered loans with a 20% - 30% interest rate. So you will want to keep the car price as low as possible. This may mean that you have to miss out on the car you want. You may have to settle for a more basic model or you could try to negotiate the price of the car down. If you are looking to buy through a main dealership, they should have some scope to drop the price.
2) Don't get so hung up on looking for a "Car Loan". Most lenders that provide this specific type of loan have very tight criteria that they require you to meet. However, you can find lenders that will supply unsecured or secured personal loans for people with adverse credit. As the loan is considered "personal", you can use it for whatever purpose you wish!
3) Once approved for your loan, take this opportunity to re-establish your credit rating. By making your loan payments on time and in full, you are actually improving your credit rating. It is a good idea to check with your lender after 6 to 12 months and see whether you can refinance the loan. If your credit rating has improved, you should be offered better terms and conditions and a lower interest rate. Thus making your monthly payments smaller!
For those of you seeking Car Loans After Bankruptcy, a very important point to note is - Do you actually need a new car? And if so, do you need it now? As your finances are not where you want them to be, you need to be sensible and act responsibly.