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Vehicle Loan After Bankruptcy

By Edited Jul 20, 2016 0 0

Buying a Car After Bankruptcy is Not Impossible

You've gone through bankruptcy and need to purchase a vehicle. Your credit is shot and you don't have enough cash to purchase a decent vehicle so you will need to try and get a laon for your purchase. You are not alone.  A vehicle loan after bankruptcy is certainly not a rare occurance.  In fact, over %50 of those who have gone through bankruptcy purchased a vehicle within 1 year prior to filing to 1 year after discharge.

Two things that you will need to determine during this process are your true Need for a new vehicle and the Timing to purhase that is most advantageous to you.


Do you really need to purchase a vehicle? I mean, do you really, really need to purchase a vehicle? The lure a purchasing a vehicle (especially a new one) can be quite tempting. But here is the reality. If you already own a vehicle, odds are you can keep that vehicle running for far less money than making payments month after month on a different vehicle. A $400 monthly car payment adds up to $4,800 for the year. That can buy a lot of tires, radiators, belts, hoses, etc.

OK...didn't convince you? Maybe your vehicle is simply is falling apart and isn't going to make it much longer? If you do truly need to purchase a vehicle shortly after your bankruptcy, purchase a used vehicle. There are plenty of vehicles out there that can be purchased in the $4,000 to $8,000 range that will give you years of good service. Find one and buy it! Don't even go to the new car lot and look, it will only frustrate you and make it will be more likely you will end up with a new car and 6 years of $500 monthly payments.

You've just gone through bankruptcy and are debt free. Resist the temptation to go back into debt. Especially long term debt of 4,5,6 or 7 more years. Pile up some cash. Perhaps you are going to need to purchase a house or rent after your bankruptcy is discharged. You may need the extra cash. If you are surreIf you need to purchase a vehicle, purchase used and purchase in a price range that won't put you back in the debt cycle.


The timing of trying to get a vehicle loan when a bankruptcy is involved is very important. The two best times to try and obtain a vehicle loan are:

1. Before any payments are missed--Sounds crazy on the surface but it happens all of the time. Many people are aware that bankruptcy is inevitable before they have missed any payments. Before their credit score is damaged, they think the best route to take is to purchase a vehicle that will not need repairs during their bankruptcy and post bankruptcy period. Unfortunately, they usually buy a new vehicle and are then saddled with a payment 4-5 years after their bankruptcy is discharged.

2. At least a year after discharge after there has been time to rebuild your credit score to some degreee and have shown that you have been able to use other credit wisely.

The worst time frame is going to be the time from when you start missing payments up through discharge and before you have had time to rebuild your credit score. Unfortunately this can easily be a 1 to 2 year period of time when it will either be next to impossible to get a vehicle loan at a decent rate or impossible to get a vehicle loan, period.

So Relax....Take your time......Be patient. Take some time to determine your true need to purchase a vehicle. If you need to purchase a vehicle, purchase used and in an affordable price range. If you didn't purchase pre bankruptcy, take your time and wait as long as you can after bankruptcy in order to get the best interest rate you can.

Enjoy your post bankruptcy debt free life as long as possible and Good Luck !!!






Quality Used Vehicle

Vehicle Laon After Bankruptcy


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