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Buying a Car Following a Discharged Bankruptcy

Here we are in a period of mortgage loan modifications and high unemployment as well as unprecedented financial struggles for many folks who have never had to be as mindful in the past about each extra dollar they spend. Some consumers have even had to pull the plug and declare bankruptcy. Despite the feelings of powerlessness and helplessness that can develop as a result of these financial times, there is some good news for car buyers.

A discharged bankruptcy does not necessarily mean you cannot buy a  car, and it also does not mean you will be required to pay an  unmanageable interest rate. While every case is different, and there is no hard and fast formula, this is indeed good news.

A discharged bankruptcy does mean, however, that you must be more 
cautious and more vigilant than you had to previously, because potential feelings of credit unworthiness can lead you to believing that you either don’t qualify for a loan, or only qualify for an astronomical interest rate. In these situations, gratitude may outweigh common sense and the net result is that an innocent consumer signs up for an interest rate that is several points higher than you qualify for.

Unfortunately, dealerships hope that a given consumer believes that the rate offered is the “best available” and because of consumer’s insecurity, the dealerships often get away with charging too much.

This is critical news and information to both understand and ponder prior to making an automobile purchase. Again, following bankruptcy, a consumer is least able to cope with sky high interest rates and the vehicles selected on their behalf that may not be the most economically viable option.

Your answers to the following four questions will affect your interest rate and your car-buying power:
1. Did I continue to pay on my current car loan up until, throughout, and following my bankruptcy?
2. Do I have a paid off vehicle to trade in that shows on time payments despite the bankruptcy?
3. Do I have a mortgage and did I keep payments current on the mortgage?
4. Has my employment been steady despite my financial difficulties?

An educated consumer is an empowered consumer. Car Pal and its staff are and always have  been dedicated to spreading the truth about the great level of control consumers have over their car expenditures, including but not limited to vehicle pricing, interest rates, trade-in values and timetables.

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