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How to buy a car in Hannon post-bankruptcy

How to buy a car in Hannon post-bankruptcy

Bankruptcy gives a person a financial fresh start but some challenges come up when you are trying to buy a new car.

Our Hannon auto loans team are going to cover what steps you should take when trying to buy a new car, don’t worry though, it won’t be too technical.

Understanding the cause of your bankruptcy

One of the things that will come up when you are trying to secure car financing is the cause of your bankruptcy. Lenders want to better understand your circumstances and being able to explain why you bankrupt demonstrates your awareness of the root cause.

If you lost your job due to the pandemic or perhaps there was a marital breakdown and you had to file for divorce.

Whatever the circumstances, being honest with the lenders will help increase your chances of getting the Hannon car loan approved.

Reviewing your credit

During the bankruptcy process, you are not able to access any forms of credit. After you have been discharged, the bankruptcy will appear in your credit report for 6+ years.

You will need to start rebuilding your credit by applying for a department store card or a secured credit card. The longer you delay opening up new credit accounts, the longer it will take to re-establish your credit.

Assessing your income

Something you will need to look at is your income. While working on your credit, you will also need to look at your income to see how much money is left in your budget to put towards a car loan.

One of the things you learned through the bankruptcy process was how to prepare and follow a budget. You should already know how much money is left at the end of the month but if you don’t start working out the sum.

Finding the right Hannon car loan provider

You are probably looking around online for lenders that offer car loans to people who were recently discharged from bankruptcy.

Some websites will claim to have access to these lenders, but your best option when it comes to finding lenders who can approve your loan is to contact a car financing expert in your area.

How to find car loan experts in your area

The best resource when it comes to post-bankruptcy car financing is your local car dealership. While this may seem like an old-school approach, you are going to be amazed by the resources that a local dealership has at its disposal.

  • Access to lenders that do not advertise to the general public. Since you are looking for lenders that specialize in underwriting these types of car loans, the dealership will have access to lenders you would never be able to access
  • Ability to negotiate terms on your behalf. Not only does the dealership have access to lenders, but they can also explain your circumstances and turn what would have been an automatic decline into a car loan approval.
  • Can give you valuable advice on how to rebuild your credit so you never have to go through the challenges of getting a subprime car loan.

By following the suggestions we have outlined, you will be able to buy a new car after you have been discharged from your bankruptcy.

We will use all our skill and experience to deliver the lowest possible Hannon auto loan rates, guaranteed. Contact Car Nation Canada Direct to learn how we can help.

Categories: Auto Loan

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