Where do you find the best car dealers for bankruptcy? Not every dealership has a special finance department willing to work with car buyers dealing with bankruptcy, but we want to help you find one that does.
Car Dealers Who Deal with Bankruptcies
According to the US Courts, the total number of bankruptcies filed have decreased dramatically since the recession of 2008. Filings have dropped from 1.47 million from June 2008 to June 2009, to a little more than 775,000 from June 2017 to June 2018.
Whether you have an open Chapter 13 bankruptcy or recently had your Chapter 13 or Chapter 7 bankruptcy discharged, it’s possible to get approved for a car loan, as there are options out there for you when it comes to bankruptcy auto financing. Some dealers that work with bankruptcies are buy here pay here, tote the note, and rent to own dealerships, to name a few. But, the best type to work with is a special finance dealer.
Special finance dealerships are signed up with subprime lenders that understand how tough it is to get financing with a bankruptcy. Unlike traditional lenders, subprime lenders place a heavy emphasis on things beyond your credit reports and score. Although requirements vary, lenders typically expect these minimum requirements:
- A pre-tax monthly income of $1,500 to $2,000 and proof of employment
- A down payment of $1,000 or 10 percent of the vehicle’s selling price, whichever is less
- Proof of residency and proof of a working contract cell or landline phone
- A list of six to eight personal references with names, phone numbers (work and personal), addresses, and relationships to you
In addition to these requirements, some lenders may require you to have a cosigner in order to approve you for financing, so you may want to have one available, just in case.
Getting a Car with a Bankruptcy
It’s not easy finding a lender willing to work with you if you’re going through bankruptcy or just had one discharged. You might not get the car of your dreams, but the dealers we work with can help you get an auto loan with the right lender, so you can rebuild your credit.
Instead of driving around going from dealership to dealership, save time and gas money by coming to The Car Connection first. By filling out our simple, no-obligation car loan request form, we can get to work matching you with a local special finance dealer. Get started today!
