Are you Eligible for Bankruptcy Auto Financing?

By: Apurva Shree

Many people applying for auto financing have bad credit or have filed for bankruptcy. Bankruptcy car loan is specifically for people who find it hard to get accepted for auto financing because of bankruptcy or bad credit record. Bad credit is usually seen as a problem case by the lenders. As there is high risk involved in lending money to people with bad credit history as they may make default on this loan also. The loan plan is in accordance to your repayment capacity and income. You need to make sure that you do not borrow beyond your means and have a monthly repayment that you can easily make. With bankruptcy auto financing, your bad credit cannot stop you from owning a car.

If you have good credit history, your auto loan options are almost endless. There are hundreds of different lenders competing with each other offering the best interest rates. Research thoroughly, take advantage of the competition, and save significantly on your monthly loan payments. Although bad credit can limit your options, it does not make you ineligible for a cheap car loan. Also you do not have to pay off your car loan in a year. You can carry your auto loan out to 2-5 years. Once you decide the repayment tenure, depending upon your income the lender can give you an idea on your monthly payments.

The Guidelines To Get Low Rate Car Loan

  • Study Lenders - To find the best car loan rate you need to study the financing companies offering these loans. Different lenders have different offers by means of interest rates, prepayment charges, service charges, loan document charges. Some lenders also provide free auto insurance with their auto loan. So shop around to get the best deal possible.

  • Negotiate Terms and Conditions - To find the best bankruptcy auto financing deal, you should want to balance the interest rate and length of your loan. Shorter loans offer lower rates, but with a higher monthly payment. Take a look at your monthly budget to see what type of auto loan would work the best for your situation.

  • Increase Your Down Payment - While zero or a slight down payment is options for car buyers, a large down payment will save you money. By putting down 20%-25%, you will qualify for a lower interest rate, even if you have bad credit.

    Buying your next car does not have to wipe out your budget. With the above mentioned guidelines you can get behind the wheel of your dream car at a price you can afford. With bankruptcy auto financing get the most out of your money.

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