subject: Buying A Car After Bankruptcy [print this page] Buying much of anything after bankruptcy can be a challenge, especially when it comes to something like a car. The bankruptcy will stay on your credit for a number of years, making it almost impossible to go through standard lending when you need it most. However, there is no reason to assume lost hope because you could always qualify for a bankruptcy car loan. There are dealers in the country who work specifically with people who have had credit troubles in the past. They could provide you with the loan you need when you need it most.
A bankruptcy car loan will be difficult to find, but if you have a good job history or at least proof of income, it should not be hard to qualify for. The reason why certain dealers work with people who have poor credit is because they know that other lenders will not be able to. Thus they get all the business and they can provide their customers with a second chance at building their credit. You can benefit from this as long as you meet some of the minimal lending requirements that the dealership has outside of your credit.
If you apply for a bankruptcy car loan with a dealership, chances are you will actually be getting your loan from the dealership itself. This is sometimes known as a buy here pay here transaction, where you make payments to the dealership and start establishing credit with them. You may be charged a high interest rate for this, but that is only because the dealership is taking a risk by loaning money to you. The dealership should still be able to get you a payment within the range of your budget, even if a lot of it initially goes towards the interest of the car.
The only thing you have to worry about with a bankruptcy car loan is whether the dealer will report to the credit bureau or not. If they don't report to the bureau, you may just consider saving money for a down payment on a car instead. Otherwise you will be paying on a car loan that will not do anything to help your credit. In time with the right loan, you can in fact get your score to a point where you qualify for traditional financing once again. You just have to be patient until then.
