I am so embarassed but i just filed for bankruptcy and i need a new car my car won't make it past my next inspection. Now that all the bills are gone and my kids don't need daycare anymore i can afford a car payment. But 1st I'm too embarassed even begin a conversation with someone about it and 2nd I'm wondering if it's even possible. I hear the people on TV constantly say how you CAN get a car after bankruptcy and i know you have to pay a higher interest rate but - should i even try??? I'm just seeking anyone out there with advice. I have a good job that i have had for 6 years. Anyone out there have any idea??
Hi M., Do not know where you live but in Brooklyn there is a used car dealer (Nacmias) that will finance a car you buy from them. In New Jersey I believe Reedmans does the same. My best, Grandma Mary
Yes, it is possible to get finance a car. How do you think all those small used care places stay in business? They make very little on the car, but lots on the financing. Expect to pay very high interest, the highest allowable by law. They'll probably request you have a co-signer, and they may also require you to make weekly or biweekly payments.
If you can find someone (a relative or your employer) to lend you the money, you'll be much better off.
Also, you should try to save as much as possible before beginning to shop, so you'll have a hefty downpayment, which will improve you're bargaining power.
Remember, it doesn't matter if you think you can aford a car payment, you've already proven to a financial organizaton that you can't. A good job with only 6 years means nothing in today's economy. Thousands of people who have had secure jobs for 10, 20 even 30 years are being laid off, taking pay cuts, having their hrs cut, and taking furloughs.
I don't know where you live but there's a car dealer in Livoina/Lakeville area that gives people a second chance in fact that's the name of the dealer "Second chance." They don't charge interest and you would pay them monthly, if you don't pay them buy a certain time it has something inside the car that won't let you start it. I have never dealt with them but I read a write-up in our local pennysaver on them. Try them out it's worth a try.
GOod Luck, it's very tough now a days. I hope you got some great advice from other people!!
Hi M.,
I am not familiar with specific car places, but as a single working mom, a reliable vehicle is not a luxury--it is a necessity. My family and I have limited income, we both work full-time, and were recently in the position where the total we put into servicing my car in one year (just to keep it running and barely passing inspection) was more than a year's worth of payments we were making on the second car. My car would even stop running while I was driving it (not okay with kids) or would not start at all (again, not cool after dark in my company parking lot in the snow--I had to have my husband leave work and drive 25 miles to pick me up). Shop around, starting with your own bank or credit union. Depending on what kind of window you have, start saving as much as possible for a down payment--sometimes that can drive down your interest rate. It stinks, but be honest with potential creditors. Another option (again, if you get a loan from your own credit union) is to have payments automatically taken out. Good luck!
Another option may be to get a loan through your own bank and then buy a used car thru want ads, a private person, not a car dealer. My husband's ex-wife filed for bankruptcy and we were shocked that the same year she was able to buy a brand new car (an Alero) and two years later she bought a new house solely in her name! From what I've been told is credit companies actually like people who have filed bankruptcy b/c now they have no debt and can pay for things again.
http://www.sweeneysmartmart.com/ we filed too and got a car right from this place once you are approved and put money down etc they will drive the car from Ohio and all you have to do is drive the person back to the nearest train station we love our minivan it was an easy process and they will let you know what cars you can choose from let me know how it goes good luck
Keep your chin up, so many people are in the same position. Good luck.
There are car places that put a gadget on your car and if you are late with a payment they turn the thing on and your car wont start. They will sell a car to anyone because they are pretty much guaranteed you will pay. Figure out what kind of car you want and call around. Check the local newspapers and dont be embarrassed, you will never see the car salesperson again so what do you care what they think. In todays market they will be happy to see you. Just be careful they dont try to sell you more car than you can really afford.
