It can be easier than you might think to get an
auto loan after bankruptcy. After all, your slate is now clean, right? By taking your time to find the right lender and comparing auto loan rates, you can get into a new car at an affordable price. However, having a cosigner available or a reasonable down payment could bring you much lower auto loan rates. In addition, no-cosigner car loans may offer better auto loan rates if a down payment is available. Likewise
Pre-approved car loans with no down payment are more readily available if a cosigner is on the auto loan.
Things to Consider When Applying For an Auto Loan after Bankruptcy
Whether applying for credit cards, a mortgage, or a
car loan after bankruptcy, interest rates will be higher than average. This is especially true of auto loan rates. One option would be to pay your bills on time for a few years and wait for your credit score to improve… But most people need a car to get to work or to get to the store, etc. and can’t wait for a few years. However, you do have a few options as we discussed above.
1. Pre-approved car loans and
no cosigner car loans are often available at the dealership. Be very careful! Many used car dealerships offer enticing fast no cosigner car loans and other types of pre-approved car loans that often carry excessive interest rates and other fees.
2. Shop online and compare
car loan rates and fees. Go to several or all of your local dealerships online and get quotes before meeting them in person. Getting a pre-approved car loan in this fashion allows you to compare auto loan rates on your own time, without the pressure of a sales person.
3. Consider putting a down payment on the auto loan. After bankruptcy, no cosigner car loans will often carry much lower auto loan rates if some money is put down. The greater your down payment, the lower your car loan rates can be.
4. Finally, consider getting a cosigner.
No cosigner auto loans are certainly available, but you will either need a large down payment or you will get a very high interest rate and monthly payments. With a cosigner that has a good credit score, you could get a very low interest rate as the loan will be based on their credit score and financial history as they are also responsible for the loan should you stop paying it for some reason.
Regardless of which path that you choose to get an auto loan after bankruptcy, take your time… compare
Low Interest Car Loan and read all of the fine print!
