Vehicle Loans - Auto Loans

Auto Loan Online
Auto Loan Payment
Auto Loan Refinance
Auto Loans
Bad Credit
Get an Auto Loan
Others
Auto Loan after Bankruptcy

It is possible to get an auto loan after bankruptcy, however; a person with a record of bankruptcy will have to pay a higher interest rate. The amount of loans available to a person with a record of bankruptcy may also be lower.

To get an auto loan after bankruptcy a person will have to have verifiable income such as a job, a successful business or a pension payment. Many dealers will give an auto loan after bankruptcy but they will have to verify income.

Some dealers will also require a person to put up a down payment or bring in a trade in to get an auto loan after bankruptcy. Other dealers may require a person to get a cosigner for an auto loan after bankruptcy.

Finding an Auto Loan after Bankruptcy

Finding an auto loan after bankruptcy is easier than many people think. There are many dealers and lenders that are willing to work with people with a record of bankruptcy.

Used car dealers and independent car dealers in particular are willing to work with those with a record of bankruptcy. Some larger car dealers and new car dealers will also be willing to work with those with a record of bankruptcy. Persons who have a record of bankruptcy will have to under go credit verification.

Low income individuals with a record of bankruptcy may have to settle for a used car. Fortunately there are dealers that specialize in sales to such individuals. It is possible to find a good deal on a used car in most communities even if you have a bankruptcy on your record.

The key to finding an auto loan after bankruptcy is to shop around for one. Not settling for the first loan offer can help a person save a lot of money on an auto loan after bankruptcy.

Limitations to Auto Loan after Bankruptcy

There are serious limitations to auto loans after bankruptcy. Most auto loans after bankruptcy will come with strict terms and very high interest rates.

It is not uncommon for a person to pay an interest rate of up to 20% for an auto loan after bankruptcy. This means a person will end up paying more for a car.

Some dealers will require a person to sign for an automatic payment plan for an auto loan after bankruptcy. Such a plan might require a person to let the lender automatically take the loan payment out of their bank account every month. Others may require a person to put up a large down payment for an auto loan after bankruptcy.

The amount of an auto loan after bankruptcy will probably be limited by the borrower’s income. Most dealers will base the amount of an auto loan after bankruptcy to a percentage of the borrower’s income.

Getting an Auto Loan after Bankruptcy

To get an auto loan after bankruptcy, a person will have to submit to income verification. Most lenders will forgo a credit report for an auto loan after bankruptcy but they will require income verification.
This means the lender may want to see the borrower’s bank records and contact their employer for verification of employment. In a few cases the lender may also require a trade in vehicle, a down payment or a cosigner.