Bankruptcy can be a really big ordeal but life does not end there and there is still a chance that you might still qualify for a number of various car loans. There are a number of companies both online as well as offline that offer some very favorable car loans terms for those people applying after experiencing a bankruptcy. Out of these lending companies a fair majority of them offer secured loans, and while you can still get unsecured loans it's often a better option that you get a secured car loans as it's a much faster and comparatively hassle-free process.
It's obviously very difficult for you to have any sort of security after a bankruptcy. Even if you have a good job it might still be difficult to put something up for collateral so that you can get car loans. The good news is that there are a few lending companies out there who will willingly give you car loans provided that you meet their criteria.
The first and probably one of the most important things you need to know about car loans after bankruptcy is the fact that lenders will charge you a very high interest rate. The interest rates for these car loans will vary from 20% - 30% depending on the lender's policies. This is why it's always a good idea to purchase a really cheap car as opposed to an expensive model so that you can pay it off fast. You might also have to negotiate a down payment. Some dealerships might be able to offer you a discount on the car you are purchasing but you will need to take the time out to bargain.
Before you get into the market and start applying for car loans it would be a good idea if you began saving some money for the down payment on the car you want to purchase. For people that need to get car loans after their bankruptcy most if not all lenders will insist on a down payment. This down payment can vary from 10% right up to 30 % and even 40%. The larger the down payment you make the lower will be your monthly installments and the quicker you will be able to pay off your car loans. Usually paying a down payment of around 20% should suffice both in getting the car loan as well as making it easy for you to eventually establish good credit by paying it off.About the Author: