Having just declared bankruptcy, there probably is not the money in the bank to cover that kind of check writing.
Yet, the need for a car is no less real.
Follow the simple advice below and you could be driving in no time.
Be Up Front When you approach a lender, or a car dealer, your bankruptcy will be not be a secret - especially to a financial institution or other lender.
Be prepared to explain fully what happened, how you ended up declaring bankruptcy, and what was ultimately done to satisfy the creditors.
With some bankruptcies, lenders are eventually paid, but the blemish on your credit history is there, nevertheless.
Craft a Letter Some bankrupt folks prefer to set forth this history in a carefully written letter that they hand over to the lender.
This has the advantage of not having to repeat the same story over and over.
Plus, nothing is left out, and no unnecessary information is divulged.
Speaking off-the-cuff leads politicians and preachers into trouble, so it can happen to you, too.
Once you are over this hump in a satisfactory way, a loan will most likely follow.
Shop for a Lender Right now, the best place to start looking for a car loan is online.
In these recessionary times, many lenders have seen that many potential customers have had to declare bankruptcy, but still require a car.
They have set up shop online to escape the brick-and-mortar expense of more traditional lenders and to allow themselves greater access to more potential customers.
This makes your shopping easier, too.
Rates and terms vary widely for bankrupt loan seekers, shopping around can save plenty of money on interest rates.
Do Not Get Cheated Many of these online companies specialize in loans for bankrupt auto buyers.
Do not assume that this is going to make your acceptance automatic or that you will not encounter rate-padding and other unscrupulous activity.
As a bankrupt consumer, you will have to endure rather high interest rates to offset the risk the lenders take.
The usual rates your non-bankrupt fellow travelers enjoy will be out of your reach.
But, that does not mean you should be cheated.
Shop until you find interest rates and repayment terms you can live with.
A Few Last Words About Bankruptcy and Car Loans The ideal situation is to have your financing all lined up before you ever go car shopping.
Using dealer or buy-here-pay-here financing, puts you on the spot, negotiating prices, pressured to sign papers, and other mind-boggling details.
And you will not get the best rate to save you the most money.
Also, trim your expectations.
You do not need to be buying your dream car at this time in your life.
You need comfortable and affordable transportation, period.
And have a down payment.
That makes prospective lenders much more comfortable, knowing that you probably will not walk away because of your investment in the cost.
Most importantly do not get taken for an interest rate ride.
You could end up still paying on interest years after your car has been junked.