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 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 on to your financial portfolio. Some guidelines to find 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
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 its maintenance once you have already bought it. This will give you an added benefit of not having to make loan repayment.
Opt for Cheaper Car:
Owing to your not-so-impressive ‘credit history’, finding loans for car can reach a maximum of twenty percent as far as interest rate is concerned. The rate of interest in car loans with ‘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.
§ You can always purchase a more expensive car if you are supported with the proper resources. However, since your ‘credit history’ is not one that lures investors or lenders, it is best to avoid this option.
§ Make sure that you select a loan which does not incur any ‘penalty’ for making early payment.
§ Try to bring down t he price of the car through negotiation. The scope for negotiation is better implemented when purchasing the car from dealership as the margin of profit is well established in such deals. The dealer will defiantly look for profit but it is up to you to evaluate the cost of the car and place your quote accordingly.
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 covers all the fees relatd to the loan.
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 ‘secured’ loan for purchasing 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 ‘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 loan is a time-consuming process. However, getting bankrupt will not prevent you from buying a car. The writing tells you how.
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