Get the Car You Need the Same Day Your Bankruptcy is Discharged!

Common Discharged Bankruptcy Mistakes to Avoid

Our extensive experience finding bankruptcy car loans means we’ve seen far too many people make one or more of the following 9 mistakes that we can help you avoid.

• Buying a Car for Cash

  Paying cash for a car won’t help you rebuild your credit. Getting a car loan and making on-time monthly payments that are reported to the credit bureaus is a way to start fixing your credit.

• Getting a BHPH Car Loan

  BHPH stands for “buy-here-pay-here” car dealerships, which means they offer what people also call “in-house financing.” Make sure you read the fine print to understand the terms and rate. But if part of your goal is restoring your credit, we’ve heard some BHPH dealers don’t even report to the credit bureaus!

• Buying a Car with High Miles

  When you settle for an older vehicle with high miles, you often end up paying a lot more in repairs that you expected.

• Buying an Expensive Luxury Car

  You probably won’t get approved, and even if you do, what happens if things change and you suddenly can’t afford it? Luxury cars also cost a lot more to maintain, repair, and insure.

• Buying a Brand New Vehicle

  The big hit you take on depreciation means you’ll be “underwater” or “upside down" on the loan for years to come. Used cars are cheaper. Buying a high-quality used vehicle gives you more car for a lot less money!

• Not Getting GAP Insurance and Service Contracts

  GAP (guaranteed asset protection) insurance is important because it covers the difference between the balance of a loan due on a vehicle and what an insurance company pays in the event of a total loss. A service contract ensures you won’t be surprised with huge repair bills when something goes wrong.

• Buying a Car for Someone Else

  This is nearly always a bad idea because guess who’s on the hook for it no matter what goes wrong – YOU!

• Buying a Salvage Car

  Salvage cars are cheap, but almost always come with a host of problems that will start appearing and costing you tons of money in repairs. Just say no!

• Buying a Car You Can’t Afford

  The last thing you want to do with your fresh start from bankruptcy is buy more car than you can really afford. If you experience any kind of hiccup with your income, you could end up in trouble. You should avoid even going for anything that results in a monthly payment that would be a stretch for you to make. Set yourself up for success by shopping for vehicles that are well within what you can afford.