It may seem like a daunting task to get financing for a new car following a bankruptcy. After all, bankruptcy can impact your credit score tremendously and can stay on your credit history for up to ten years. With information like that, it can seem futile to even attempt to finance a new car. However, with some hard work, you can build your credit up in a hurry in order to purchase a brand new car. To clarify what may be needed or expected of you prior to trying to get financing for a new car, contact our law office to set up a consultation so you can get the advice you need to proceed.
How Much Money Down Should I Expect to Pay?
A down payment for a car following a bankruptcy is surprisingly not that much different from purchasing a car without a bankruptcy on your credit report. A common misconception is that because you have a bankruptcy on your credit report, you may need to shell out additional cash as a down payment. However, this is not the case. While down payment amounts may vary from situation to situation, aiming for at least 20% down on a car can go a long way towards making your monthly payments manageable.
Is Financing a Car After Bankruptcy the Right Choice for Me?
Financing a car after finalizing your bankruptcy may seem like a stretch for you. Whether or not it is the right choice for you depends on the circumstances surrounding your current situation. If you have a steady income that leaves you with ample room to fit in the monthly payments a new car demands, along with a substantial down payment, you may be able to get good financing for a new car. However, it is important to note that the interest rates you receive may be exponentially higher than normal due to the bankruptcy on your credit history. You can consult with your bankruptcy lawyer to see if buying a car is the right choice for you.
What Steps Should I Take Going Forward?
Seeking advice from a bankruptcy lawyer can give you all the answers you need as to how you should proceed with financing a car. Financing a car may seem like a pipe dream after going through bankruptcy, it is more real than you think. With many dealerships providing financing for those with lower credit scores, you can be well on your way to owning a new car. Just make sure you understand some of the drawbacks of doing so. Call Holland Law Office today at 970-232-3097 for more information on your bankruptcy and financing options for a car.