Auto Loans and Bankruptcy

Bankruptcy fillings have been on the rise in the United States over the last four years. With all the instability of employment and the crash of the housing market at least here in Michigan, it seems bankruptcies today are at an all time high. I have been working with customers who are either in Bankruptcy or have just discharged for the last six years. Most of my customers have been able to re-establish their credit and get back to financing at lower interest rates and getting anything they want on credit.

The toughest thing about going through Bankruptcy and trying to get an auto loan( this is the fastest way to rebuild you credit) is finding the right dealership. Over my years in this business I have met many customers that have tried to buy from the wrong dealership. These customers would get the old song and dance of "tell them what they want to hear to get them in the door" little do customers know things change once you show up to that dealership. That zero down payment goes to $1000.00, the $300.00 monthly is now $450.00. You were told you could buy that full size Suv now the sales person is showing you cars.One thing I can say is be prepared and know what to expect. This can help save you time an frustration when trying to get that auto loan.

For customers that are pre discharge do not expect zero down financing that is unless you have a trade in. For those dealers that tell you about the in house rebate watch out. Unless you trade a vehicle in or put cash down dealers can not show an in house rebate as cash down. Once you sign on that contract and a lender purchases said contract you and the dealer have both committed bank fraud. Now if your bankruptcy has been discharged there are some options out there for zero down financing depending on how well your credit score survived the bankruptcy. You will need to have a credit score in the mid 500's or better to receive a zero down auto loan.

When reaffirming on a mortgage during your bankruptcy make sure it is current when applying for your auto loan. Most lenders will not finance you if your mortgage is behind. The ones that do will charge the state maximum interest rate. There are lenders out there will loan you money even if you have foreclosed on the house and still living there.

For people that file a second bankruptcy within a ten year period, make sure you have been squeaky clean between the two. You will need to have paid everything good up until your second bankruptcy in order to get your best deal on your next auto loan. When you have adverse handling of accounts between the two bankruptcies it shows a complete lack of wanting to pay your debt.

Remember today your credit counts, now more then ever.The key to saving time and lots of frustration is being prepared and knowing what to expect when you make that trip to get your next car loan. Check back for more information on auto financing and your credit. If you are in need of acar loan visit our website at http://www.getmeachevy.com/ and apply today.