The first question many people discharged from their bankruptcy is whether they’ll be approved for finance again – not just car loans but all types of loans. Finding a lender who will take on an ex-bankrupt or an ex- Part IX Loan Agreement holder seems impossible.
Don’t worry: If you have gone through bankruptcy and are in need of a car, you can gain car finance with a few types of bad credit car loans. Please note these bad credit car loans are also known as “sub-prime” loans. These loans attract a significantly higher interest rate than mainstream or “prime” lending car loans. Rates range from 19% and upwards of 30% per annum.
You might have to wait
Lenders and financiers will not lend money to a recently discharged bankruptcy. “Recent” usually means within the past twelve months.
Ask yourself before proceeding
If you have waited the twelve months after the end your bankruptcy and feel confident you can handle car loan repayments, ask yourself before going through with quotes and applications:
Has my banking and financial situation improved?
Have I not made any blemishes on my record, such as an overdraft or overdue bill?
Do I have regular employment?
Have I had a stable residential history in the last twelve months?
Do I have the income to make regular repayments without missing any?
Can I limit my car purchase to something well within my budget?
If you answered yes to these questions, then you may be eligible for a bad credit car loan and a second chance at car finance.
Other aspects to consider
Some brokers and lenders may add requirements to your car loan to decrease their risk lending to a discharged bankrupt. They may only grant a bad credit car loan on the condition you have a trade-in or a cash deposit. You must decide if this is feasible in your current financial situation.
We can help
The financial professionals at Bad Credit Car Loans have years of experience helping discharged bankrupts find products that suit them and their financial situation. We are responsible lenders, following industry best practices. We only approve finance to discharged bankrupts with good chances of paying back the loan. We always consult with you before proceeding. Bad Credit Car Loans access a wide range of lenders and financiers to find all our discharged bankrupt clients the best deal possible. Contact us today for a no-obligation consultation or quote!