Filing for bankruptcy can leave a person feeling disheartened toward future financial endeavors, such as buying a car. Fortunately, many dealerships, including our team right here at Skook Auto Sales, understand the importance of offering second chances and helping people get back on the right track in terms of spending and budgeting. So, is it possible to purchase a vehicle after bankruptcy?
The short answer is—yes, you can buy a car even after completing a bankruptcy. Our team is committed to working with each individual that walks through our door in order to help them find an auto financing plan that works for them. So, whether you have poor credit history or no past credit, we can find a vehicle that fits within your budget.
Read more: What is Buy Here Pay Here auto financing?
Tips for purchasing a vehicle after bankruptcy
If you’re looking to buy a car after bankruptcy, you may want to check out the tips outlined below. These tips may not apply to each individual since each bankruptcy case is unique, as are the individuals that go through the process. When in doubt, we recommend consulting with a bankruptcy attorney if you aren’t sure of your specific situation.
- Take steps to improve your credit. If at all possible, work to rebuild or repair your credit before looking to purchase a new car. This step isn’t completely necessary in order to be approved for a loan, but it may help to improve your credit score and potentially get you a lower interest rate on your auto loan.
- Wait until you’ve received your bankruptcy discharge. Depending on the type of case you’re involved in, you may need to wait anywhere from 90 days (Chapter 7) to 5 years (Chapter 13). When in doubt, consult with a bankruptcy attorney.
- Make a down payment. In many cases, due to discharging debts, bankruptcy may provide you with a bit of disposable income, which you can then use to put toward a down payment on a vehicle. You may not be required to make a down payment but doing so allows you to pay for a bulk of the vehicle right off the bat and avoid paying interest on that amount.
- Remember, you’re re-establishing credit. Making payments on a car loan allows you to continue re-establishing your credit after bankruptcy. Take the opportunity to make payments on time and in full.
Take the next step: Fill out the Online Credit Approval form
If you have any questions or concerns about getting a vehicle after bankruptcy or another bad credit situation, we welcome you to contact our team at Skook Auto Sales. We specialize in helping all customers find a vehicle within their budget, no matter their credit history. We look forward to hearing from you!