Is It Possible To Get A Car Loan After Bankruptcy?
Can You Get a Car Loan After Filing For Bankruptcy?
Hard times can hit anyone at any time. According to the Government of Canada, as many as 1 in 6 Canadians will file for bankruptcy (or consumer proposal) at least once. The stark reality is that going through bankruptcy will make obtaining credit more difficult and expensive, but it is still possible to find vehicle financing. Our team has a lot of experience working with people with all kinds of financial situations – even particularly challenging credit histories. Let’s take a look at what you can do to get a safe and reliable vehicle while you’re working through difficult financial times.
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Buying New or Used After Bankruptcy
One of the biggest advantages of choosing to buy a used vehicle over a new one is that it will be less expensive in almost all aspects. This becomes a very important concept in finding a car loan after obtaining a bankruptcy judgement. Financial experts ask people to manage their expectations when they’re shopping for their next vehicle.
People with a bankruptcy in their financial history likely won’t qualify for many new vehicle financing incentives. Higher interest rates are almost guaranteed. People might have an easier time finding a car loan to finance a pre-owned vehicle because of the lower risk to the lender.
Where Can You Get a Car Loan After Bankruptcy?
While it might be a bit harder to find a financial institution to provide someone with a car loan after they’ve gone through bankruptcy, it is not impossible. In fact, obtaining a car loan and maintaining regular payments will help rebuild a person’s credit profile. Canada has a long history of high credit union membership. Credit unions differ from banks in a few key ways, the most important being ownership. A credit union is owned by its members and may be more willing to help people get back on their feet financially.
Can I Refinance My Car Loan?
Let’s say somebody has successfully found a vehicle loan after filing for bankruptcy and they have not missed any payments for six to 12 months. That person could be in a position to save themselves some money on higher interest rates they were stuck with. Working with your lender can have all kinds of benefits, you just need to take the opportunity to ask for help.
Everyone needs a safe and reliable vehicle to live their lives on their terms. Make an appointment with an Autohouse Kingston representative today to learn how we can help you.