Buying a car while in bankruptcy can be a very trying experience. You will need to make a request to the bankruptcy trustee and show a definite need for a new car. Usually, if you aren't asking to buy an expensive luxury car and can show that you have a valid need, your request will be approved. You will however, have to prove that you will be able to make the payments before you're given authorization by the trustee. You can expect to pay a much higher interest rate than if you had spotless credit. Typical interest rates for people buying a car while in bankruptcy are above 10 percent. If you can make a larger down payment, you will have a better chance of being approved for a loan, and maybe even get a lower interest rate.
What Kind of Rate Can I Expect When Buying a Car While In Bankruptcy?
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Car shoppers with a credit score under 680 will have a hard time getting a loan without a cosigner, but some bad credit car loans are available.
January 27, 2012
Loan approval is not guranteed and is subject to credit application and approval of the lender. Individual loan terms may vary.