3 Ways to Get a Car Loan in Canada After Bankruptcy

Bankruptcy may seem like a light at the end of the tunnel, but you’re financial woes aren’t over until (1) you repair your credit and (2) you’re ready to manage the habits that got you into financial trouble in the first place.

Enjoy the relief from creditors while it lasts, for your old woes will be replaced by new ones soon enough. For example, your insurance rates will go up because credit rating is one of the main factors determining those rates. Interest rates on car loans will as well go up. But getting approved for an auto loan need not be overwhelming. There are plenty of reputable lenders willing to work with you—all you have to do is convince them that you’ll repay.

Can I Buy a Car After Filing for Bankruptcy

It’s a common misconception that one cannot apply for a car loan after filing for bankruptcy. You cannot apply while bankruptcy proceedings are underway, but you can apply for an auto loan after these conclude. In fact, such a loan could help you rebuild your credit

But just because you can apply for a loan does not mean traditional lenders (banks and credit unions) will be interested in lending you money. And if they choose to do so, their interest rates will be exorbitant.

Work with Dealers Who Offer In-House Financing

There are plenty of dealers willing to work with individuals who’re going through bankruptcy. These dealers help individuals get bad-credit car loans. These dealers look beyond your credit score; instead, they seek to understand your financial situation. They will probably look at your income, payment history, reasons for bankruptcy, etc.

Interest rates are usually reasonable, especially if you’re pre-approved or you put a decent down payment down on the car.

Work with the Right Lenders

Applying for car loans after bankruptcy can be complicated. Do not approach predatory lenders just because you have been turned down by conventional lenders. Read online reviews, understand the fine print, and learn about interest rates before choosing a lender.

Choose a lender that offers numerous benefits. Maritime Car Loan specializes in giving car loans in Halifax. They offer a credit rebuilding program and discounts for co-signers, and they manage a referral program and even offer cash-back on loans. Buying a car from Maritime Car Loan offers several advantages: you get free delivery, a full tank of gas, and a 180-point inspection on your vehicle.

Buy a Used Car

As it was said earlier, your choices are limited for car ownership after you file for bankruptcy. Buy a used car that’s within your budget to save money—you’ll benefit from a low-interest rate as well.

Buying a car after bankruptcy can be overwhelming without thorough planning. You will have to slim down your lifestyle and reorganize priorities. This is difficult, but not impossible!