Get An Auto Loan After a Chapter 7 Bankruptcy
I-5 Auto Credit has several auto loan programs designed to help people buy a car with both open and discharged Chapter 7 Bankruptcies.
Many of our Chapter 7 Auto Loan programs do not require any down payment, assuming you meet the other qualifications.
Why get an auto loan after a Chapter 7 Bankruptcy?
There are actually several reasons to consider buying a car after your Chapter 7:
1. Rebuild your credit.
You need to think about the big picture. Do you want to buy a home in the future? Could a prospective employer want to look at your credit before hiring you? What about a potential landlord? No matter how you look at it, credit is everywhere. The sooner you reestablish your credit with a major installment loan, the sooner you can put the bankruptcy behind you and Get cheap auto insurance quotes for your vehicle.
2. Reliable transportation.
Most bankruptcy auto loan programs are designed to help people buy what the lender determines is “reliable” transportation. The lender’s definition of reliable may be different than yours. Here are the basics: Low miles, Recent model year, No “gray market” vehicles (Daewoo is an example of a gray market car).
3. Affordable Monthly Payment.
The last thing a lender wants to see you do after a bankruptcy is get in over your head. Typically, the payment you will be approved for is very conservative based on your Debt-to-Income ratio. We have had customers in the past that would rather keep the $700 payment they had on their Lexus than get a vehicle with lower miles for $350 per month. Everyone has to make their own decision, but try to think about it logically instead of emotionally.
4. Typically Low Down Payment.
If you just went through a bankruptcy, there is a good chance that your bank account is lighter than it used to be. Most of our bankruptcy programs understand. That is why our main bankruptcy programs do not required large down payments. Often, nothing down.