If you’re in the market for a new car and have recently experienced a financial hardship such as bankruptcy, there are a few important things to consider. Consumer bankruptcy does have a real effect on the financing that may be available to you, but it doesn’t mean you won’t be able to get a car loan. We Can Help After Bankruptcy to identify the best path forward in securing a loan and purchasing a vehicle.
It’s important to lead with transparency when you come to get a car loan in Fort McMurray. Reputable auto lenders will be running a credit inquiry anyways, so it’s always to your advantage to be forthright with your situation. Be aware that your bankruptcy may have an impact on two key factors. First, you will probably not be offered the lowest interest rate on any loan. This is a standard practice with less-than-perfect credit, and shouldn’t come as a surprise. Still, be cognizant of the current rates on the market, and be willing to shop around.
The second factor some auto dealers may require is a higher than average down payment. Where a typical car buyer may be asked for a 5% down payment, consumers with bankruptcy may be asked to produce 10% or more. This is a move that lowers the lender’s risk, and it also shows a commitment on your end of the deal.
Beyond dealing with higher down payments and interest rates, there are a few other strategies that can help you secure a loan after a bankruptcy. Many people who apply for a loan with a co-signor who has good credit have a much higher chance of getting the money. If you’ve previously worked with a lender and made all of your payments, think about re-approaching them again. Even with a bankruptcy on your record, they know your history and may be willing to lend again.
Above all, remember that any borrower must demonstrate a stable income and employment history. Regardless of your credit situation when looking for auto financing in Calgary, be prepared to answer about your past issues and how you’re moving forward in a responsible way.