Buying a Car After Bankruptcy

Seeking bankruptcy protection may seem like the end of the world for those of us who are over our heads financially, but bankruptcy laws exists for a reason: it allows consumers the opportunity at a second chance.  The loss of a job, a divorce, an illness are all factors that contribute to our inability to pay our bills.  However, a bankruptcy does not come without its’ consequences, namely when it comes to trying to get additional credit like getting a mortgage on a home or getting a car loan in Saint John.


Bankruptcy and purchasing another home after bankruptcy may be put on hold for several years, but bankruptcy and car financing are not terms that cannot be used in the same sentence.  If you have not looked into getting a loan after a bankruptcy, you may find it is easier to qualify than you think.


With so many millions of us being affected by the recent recession, creditors have realized an untapped market of potential borrowers: people with bruised credit and those with a recent bankruptcy.  It used to be that there was no chance you could secure a bankruptcy and car financing in New Brunswick right after.  Most times your only option to own a vehicle was to pay cash for it, but times have changed.


To begin your search for an after bankruptcy and car financing lender, start online.  There you will find dozens of companies who will work with you to find a vehicle and an auto loan in Saint John to fit your budget.  Simply fill out the online application and you be given an answer usually within 24 hours.


Alternatively, you can visit your local automobile dealership and talk with the finance manager.  He or she will review your credit application, review your credit report and tell you right away if you are eligible for a car loan and at what interest rate.  If, for some reason you are not, you will be advised what steps you need to take.  There could be still unresolved creditor issues which did not get cleared from your bankruptcy and car financing is not an option until they are fixed.


Lastly, it is worth your time to go to your bank or credit union.  Talk with your banker who can also review your credit situation to advise you of your creditworthiness.  You may be able to get pre-approved for a loan before you start your search for a car which will save you time and, possible heartbreak, should you find the car of your dreams only to realized it is beyond your budget.