Bankruptcy is a terrible thing to have to go through and one of the biggest challenges once everything is done is figuring out what to do next. If you’ve declared bankruptcy and still in a need of a car, an important fact is that despite what just happened, you can still buy a car. The added burden you’re taking on is more of a mental stigma, something that will make you believe that you should take the first deal that jumps out at you, that since you’ve got this black mark on your credit report that you are untouchable by dealerships and loans. This is not the right mindset.
Know that you’re not alone in bankruptcy. According the American Bankruptcy Institute, since the start of the recession at the end of 2007, more than 7 million people, both single individuals and couples, have filed for bankruptcy. You’re not going to be the first person with a bankruptcy mark looking for an auto loan to get a car.
When you apply for an auto loan, the lenders will be looking at your track record as much as your bankruptcy. They’ll see how your payment history was on things such as previous car payments and mortgage payments. They’ll check to see if you’ve gotten back on track after missing payments. This can lead to different reactions from different lenders, but as long as you’re willing to persevere, you should be able to find an auto loan for the vehicle you need.
Dealing with a bankruptcy is difficult, but getting a car is still possible. If you need help navigating the process, be sure to contact us at Bayside Chrysler Jeep Dodge. If you need further assistance in finding financing for a new vehicle on bad credit, contact our financing department. We love to say yes, you’re approved! Be sure to like Bayside on Facebook, following on Twitter, or subscribing on YouTube.
Auto loans are not something that people are familiar with in terms of the process. Most people come in and cross fingers hoping that the stars will align for a fantastic auto loan rate. Most of the factors that go into determining a person’s auto loan are an unknown quantity to most people. Here is a list of just some of the things to take into consideration when wondering what your auto loan rate may be.
Your credit score is at the top of the list. Understanding the score and knowing it are vital to the process. A high credit score opens a lot of doors and enables you to possibly qualify for a great auto loan rate. Getting that high score can be tricky, but paying off monthly bills and loans on time is a major part of helping that work.
Another way to raise a credit score is to be vigilant about the information present on the score. This is why it is recommend on going through your credit score on a regular basis. Look it over and see if anything is being misreported or just shouldn’t be there. Any and all harmful information present on a credit score is most likely going to negatively affect you. So get it off of there.
Down payments can be a major impact on getting that better auto loan rate. While there’s no magic number, the higher the cash you can put up front towards a vehicle, the better.
There’s plenty more factors to consider with regards to auto loans, but these are two very important ones to be aware of. Educate yourself and be ever mindful of your credit score, and the car buying experience will be that much better.
If you need help with financing, contact us at Bayside Chrysler Jeep Dodge. We’ll work with you to find the right possible loan to suit your situation. We love to say yes, you’re approved! Like us on Facebook and follow us on Twitter to see our monthly news and special offers.
Shopping around for an auto loan can be a trying experience, especially with a low credit score. It can seem impossible to find the car you want at rates and terms you can afford. Most people don’t know that they can improve their chances of getting a better rate, though, by following these 4 simple steps.
- Be Honest with Yourself: Take a look over your personal finances and ask yourself how much you can really afford to spend. Do you really need a new car, or are you better able to afford a good used car? If your finances are tight already, then a reliable vehicle that generally doesn’t need a lot of repairs is a smarter choice than something flashier (and pricier).
- Research Before Going Into a Dealership: When you go into a dealership, that dealership assumes that you are ready to test drive and buy. If you want to research model reviews, it is better to do so before going in. Otherwise, you could end up buying a car you didn’t really want or hem and haw over the pros and cons of a model and waste the salesperson’s time. It is always good to go into a sale certain that this is the car you want, but keep in mind that the dealership’s sales staff make money on commissions. Be considerate of that, and if you aren’t ready to buy, walk away and let that salesperson help another customer.
- Bring a Down Payment: Fox Business recommends having a 20 percent down payment for a new car and 10 percent for a used car. By having that down payment, it increases the chances of getting a better interest rate and lower monthly payments.
- Shoot For a Shorter Loan Length: The value of a car, especially a new car, depreciates fairly quickly, so it is better to go with a shorter loan length. Even if it means higher monthly payments, you will probably end up with a higher interest rate if you get a longer loan.
Are you shopping for an auto loan but running into problems because of your credit? Give Bayside Chrysler Jeep Dodge a chance to help you. You can see our online new and pre-owned inventory here, and be sure to like Bayside on Facebook and follow Bayside on Twitter to get the latest news from the auto industry.