In today’s world availing loan for cars come with various
options. You do not have to worry your head over the fact whether you will
receive a loan for buying a car even after filing for bankruptcy. Various
companies offer terms that are highly flexible in terms of car loans to provide
assistance to the victims of financial crises.
You can get ‘secured’ loans’ for
purchasing cars from lenders. However, it is not always possible to get loans
due to the unimpressive ‘credit history’ that sticks onto your financial
portfolio. Some guidelines for finding loans after liquidation have been cited
below. They will help you to get an idea as to how to go about with the car
loan process just after you have filed for bankruptcy.
Getting Finance for Your Automobile is an Extensive Process
Cash Payment:
Make savings for purchasing a car, which is in ‘working’
condition instead of looking for a more fanciful car. Only make sure that you
do not have to spend a lot on its maintenance once you have already bought
it. This will give you the added benefit
of not having to make loan repayments.
Opt for Cheaper Car:
Owing to
your not-so-impressive ‘credit history’, finding loans for a car can reach a
maximum of twenty percent as far as interest rate is concerned. The rate of
interest in car loans with a ‘bad credit’ history is high due to the increased
amount of default risk. Hence, you should opt for a less costly car which will
match your requirements as per your present state of finance.
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You can always purchase a more
expensive car if you are supported with the proper resources. However, since
your ‘credit history’ does not lure investors or lenders, it is best to
avoid this option.
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Make sure that you select a loan
that does not incur any ‘penalty’ for making an early payment.
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Try to bring down the price of
the car through negotiation. The scope for negotiation is better implemented
when purchasing the car from a dealership as the margin of profit is well
established in such deals. The dealer will definitely look for profit but it is
up to you to evaluate the cost of the car and place your quote accordingly.
Credit Re-establishment:
Make all
the payments for the car loan within the given timeframe. It must be known to
you that making the monthly payments within the time limit will increase your
‘credit score’. This will positively affect your approach to the less expensive
rates of car loans even as your ‘credit score’ increases.
Refinancing Your Car:
Make sure
that you refinance the vehicle within twelve months of loan approval. As your
‘credit rating’ improves, there will be a decrease in the car loan rates for
your refinanced vehicle. It is possible that the decrease will come down to
half the loan rate you are paying at present. Try to implement that the savings
you make from refinancing your vehicle cover all the fees related to the loan.
Conclusion:
Finally,
do not pin all your hopes in a single plan. Keep other options open. It may so
happen that you are not able to find a single company willing to finance your
loan owing to your existing financial condition. Alternatively, you can get a ‘secured’ loan for purchasing the car from private lenders. Many lenders offering
“secured” loans give little importance to “credit rating” and look for
‘collateral’ from you in lieu of the money lent by them.
If your plan for a ‘secured’ car loan is approved make sure that you refinance your car again so
that the rating becomes cheaper. If you can at all, get a family member who you
trust, to co-sign the loan application form for availing better finance for
your loan.
Purchasing a car through a loan is a time-consuming process. However, getting
bankrupt will not prevent you from buying a car. The writing tells you how.
