Don’t Let a Bankruptcy Destroy Your Car Ownership Dreams

If you find yourself feeling excluded from the car market due to bankruptcy, you’re not alone. A less-than-perfect credit report can cause anxiety, especially when facing a big ticket purchase like that of a vehicle. It may seem you’re being shut out entirely. Unfortunately, in today’s tough economy, many people share this issue. But the good news is that many dealerships have created programs to help customers get behind the wheel of a quality vehicle, despite a creaky credit report. All over the country, there are car dealers that deal with bankruptcies, low credit scores, or no credit at all. These dealers offer financing to people who’ve found themselves turned away by competitors. So if you’ve found yourself in the position of wondering how you can secure financing, it’s helpful to discover that you have options.

What Happens When You File for Bankruptcy?

When an individual or company files for bankruptcy, a court trustee and judge look at assets and liabilities, then determines whether to dismiss the debt. The dismissal, known as a “discharge,” means that you no longer are legally required to pay these debts. This verdict occurs only when there aren’t enough assets to cover the liabilities. The discharge verdict was designed to give consumers a fresh start if they found themselves with no better options.

With the majority of the population living paycheck to paycheck, there is no reason to judge anyone, including yourself, if you end up having to go the route of bankruptcy. It’s often the unintended result of life throwing unexpected emergencies your way. It can happen if you file for divorce, experience a natural disaster, become the victim of theft, have an unplanned emergency, or lose your job. If you find yourself experiencing a medical emergency that buries you under a heaping pile of medical bills, 65% of people experiencing bankruptcy can relate, according to the 2019 American Journal of Public Health. Or, it could be the result of budgeting issues and unmanageable credit card debt.

There are pros and cons to employing this measure for handling your debt. Both sides should be carefully considered before making any big decisions. The bigger pro is that bankruptcy is often a much-needed second chance for financial freedom for those who file. According to the American Bankruptcy Institute, 95.3% of people who file for Chapter 7 bankruptcy come out successful. Whether you need it or not, it’s a big decision to make for your financial future. Arguably, the biggest con is that the recorded bankruptcy on your record will pop up every time a lender screens you for a loan application, like vehicle financing. It doesn’t mean you’ll be gatekept out of obtaining all loans, but it does mean you’ll be excluded from getting the best available interest rates. In most cases, this will last somewhere between 7-10 years.

How Does It Affect Car Financing?

When you’re applying for an auto loan and have a bankruptcy on your record, it will show up and affect your credit. This could mean you’ll have a tougher time securing financing or be turned away altogether. So this begs the question, how do you apply for a car loan without being turned away? The answer is to do your research and car shop with a dealer who offers approval in cases like yours.

It’s advantageous for a car dealer to offer financing to people who’ve experienced bankruptcy since it opens the door to many customers who don’t qualify at competing dealerships. While there are people out there searching for a place where they qualify for a vehicle, there are hundreds of dealerships missing out on their business.

Take, for example, our online dealership here at Online.cars. We defy traditional dealership standards in many ways. First, we offer customers the full car shopping experience from the comfort of their own homes. With Online.cars, you can search their vast inventory, apply for financing, find out what amount and rate you qualify for in seconds, purchase your vehicle, and have it delivered directly to you without ever setting foot in a dealership.

We Offer Great Vehicle Options to Those Who Have Experienced Bankruptcy

When it comes to financing, Online.cars offers a user-friendly two-step form that is quick to complete and protects your information. Through this two-form system, you’ll discover how much financing you can secure for your next vehicle in minutes. We will present your credit report and show you which vehicles you qualify for at your offered rate. These steps help make our process feel personalized and direct. It is typically this part of the process that puts stress on customers with less-than-ideal credit or a bankruptcy in their background. However, Online.cars has a guaranteed approval system that allows applicants to qualify for auto loans, despite bankruptcy.

Online.cars has upfront pricing on every vehicle. Plus, they make it simple to browse by your desired criteria. Search the car you want by make, model, year, price, and more. Even though it’s an online service, we also offer a trade-in value for your current vehicle. Get a competitive price for your car and use it towards the purchase of a new one. Online.cars will send you a full breakdown deal sheet that outlines your purchase, payments, and lease alternatives. We price your current vehicle based on a thorough valuation from Kelley Blue Book, so you know you’re getting a great deal.

In order to secure financing through Online.cars, you’ll need to have some documents prepared. The process includes completing the credit application, uploading your valid driver’s license, and uploading your proof of insurance. Having these documents prepared in advance will save you time and make it a smooth process. While this may usually be the part of the process consumers dread, especially those with bankruptcy on their records, Online.cars guarantees approval. Once your credit application is approved, you can choose the vehicle that best suits your lifestyle and budget. To complete the process, Online.cars has you review a final deal sheet with your personalized numbers. From there, you’ll review and accept this deal sheet and wait for delivery.

When it’s time for delivery, one of our Delivery Specialists will bring your new vehicle directly to your home or office. Our friendly and knowledgeable Specialist will help you connect your Bluetooth, customize your settings, answer questions, and walk through your new vehicle’s features. If you’d prefer to pick up your new vehicle at our dealership, that is also an option.

Everyone Deserves a Great Vehicle

We understand that shopping for a new vehicle can be stressful, especially when you have filed for bankruptcy. That’s why Online.cars takes the hassle out of car shopping and guarantees approval. Based on the information you provide, Online.cars will customize a loan that gets you behind the wheel of a quality vehicle. The whole process is designed to make things simple. Shop for your desired vehicle and secure financing, all from the comfort of your couch. This process removes the stigma from shopping with bankruptcy and puts the focus back on what really matters: customer satisfaction and giving second chances to drivers. Check out the inventory and start the process with Online.cars today.