When taking out an auto loan after bankruptcy the last thing you want to do is take out a loan that is bad for your new budget. You never want to put your finances in jeopardy just for a new vehicle. So you need to make sure that when you are about to take out a car loan after bankruptcy, you are getting the best terms.
In this article we’ll discuss the best tips on getting better loan terms in regards to the monthly payments and interest rates.
Large down payment
Putting down a bigger down payment will decrease the amount you need to take out in the loan, and may also lower your monthly payments.
Find a cosigner
Having someone with great credit will help when you’re applying with your bad credit. This way you can apply for a bankruptcy car loan at a lower interest rate.
Loans with fixed payments over the lifespan of the loan are much easier to manage. Loans that have variables at any point during the lifetime of the loan are risky. Make sure to only get bankruptcy auto loans that will stay at the current term throughout the whole span of the loan.
Stay within your budget
If you need to extend the term of the loan beyond 5 years because of the payments, then you’re more than likely buying a car you can’t afford. It is best to get a vehicle within your budget until your financial situation improves.