Buying a car after bankruptcy can be a worrisome process, but don’t worry. It is possible to get the vehicle you need and get back on the road again, especially if you find car dealers who deal with bankruptcies. These tips can help you do exactly that.
Decide Whether to Pay with Cash or Credit
The first thing you need to understand is how you plan to purchase a vehicle after bankruptcy. Many people find they have extra cash to spare once they’ve declared bankruptcy, and it’s okay to spend that cash on a vehicle as long as you don’t have bankruptcy trustees who have claimed an interest in your tax returns.
Even if you don’t have the extra cash to spare, you may still be able to finance a vehicle. This process can help to reestablish your credit rating, but keep in mind that you will often have to pay much higher interest rates because of your recent bankruptcy. If you plan to finance the vehicle, it’s still okay to shop around for a loan that might be right for you.
Decide on the Best Time to Act
The best time to purchase a vehicle after bankruptcy is to wait until you’ve gotten your discharge papers or at least until your bankruptcy case has been dismissed in court. If you filed Chapter 7 bankruptcy, that will usually be about 90 days after meeting with your creditors. In a Chapter 13 case, though, you can expect at least three years to completion, so you’ll need permission from the bankruptcy court to purchase a new car while you’re still in those proceedings.
Consider Pre-Approval
If you have to get a loan to get a car after you’ve filed for bankruptcy, one of the best steps you can take is to get pre-approved. Many dealerships, including the Palm Beach Auto Sales Outlet, offer pre-approval so you can learn more about what might work best for your situation.
It is possible to get a vehicle after bankruptcy with a bit of extra knowledge and work on your end. To learn more, contact us today.
