Life after bankruptcy can come with several challenges and one of those is car loan financing.
There are three common scenarios you might be facing:
- Discharged Bankruptcy
If you’ve been discharged from bankruptcy without re-established credit, you will have a few options for car loan financing, but it will still be tough to secure. It can take a couple of years after being discharged to rebuild your credit enough to begin qualifying for financing with most mainstream lenders again.
If this is you, you may want to consider a lender who provides financing to people with bad credit. Buying a vehicle after bankruptcy can actually help with credit repair as the loan will report as new credit, which will help you rebuild your score.
- Undischarged Bankruptcy
If you’re undischarged, it will be even harder to get car loan financing. Most mainstream lenders won’t even consider it. Prudent Financial is one of the only companies who lends to those in undischarged bankruptcy.
- Considering Filing for Bankruptcy
If you’re thinking of filing for bankruptcy, here’s what to consider about your car.
When filing for bankruptcy it often makes sense to include a vehicle. For example, let’s say you are making a high car payment and far more is owed than what the vehicle is worth. In this instance it can make a lot of sense to include the vehicle in the bankruptcy and just give it back. If you are in this boat and are still considering filing for bankruptcy, it’s a good idea to explore your options beforehand.
If you’re looking at car loan financing, be sure to consider the payment term. Some dealer financing loans, even with a low monthly payment, come with a repayment term of 72 to 84 months — or longer. That’s a lot of interest.
Conventional car loan financing may be the better option. Getting a loan to pay for a car means you can shop around, find the best rates and terms, and you can be sure that you are only spending what you can reasonably pay each month.
At Prudent Financial, we offer car loan financing to people with discharged bankruptcies, undischarged bankruptcies, and those who are in consumer proposal. Our Prudent Value Cars division offers the safest used cars and the lowest rates on bad credit auto financing in Toronto and the GTA.
Loans after bankruptcy are possible — call Prudent at 1-888-852-7647 or visit www.prudentfinancial.net.