Published on September 29th, 2009 | by Canadian Credit Expert1
Bankruptcy Car Loans
Bankruptcy Car Loans
A lot of Canadians think having bad credit or filing bankruptcy means they can’t apply for a loan, get a credit card or finance a car loan. While it is true that having a bad credit history or bankruptcy can make getting a car loan difficult, it does not make it impossible.
If you’ve got a history of not paying your credit on time or you’re in a bankruptcy, banks and finance institutions will probably consider your credit too high risk and decline you. The same goes for after bankruptcy car loan applications. The truth is that finance companies and banks will not provide financing to bankrupt customers because they stand to lose too much if the loan defaults.
Fortunately there are special finance banks and car dealerships in Canada that will take the risk. These special finance lenders service a range of high risk products including bankrupt car loans, bad credit car loans and after bankruptcy auto loans.
Get a Car Loan in Bankruptcy
If you’re in bankruptcy, then you represent a significant risk to regular banks and auto lenders. For many finance institutions a bankrupt or previously bankrupt customer is just too high a risk. While filing bankruptcy can be considered a bad thing, it is sometimes the right thing to do. Special finance companies that approve bankrupt car loans and after bankruptcy car loans understand that.
Because of a growing group of “sub prime” auto lenders in Canada, your chances of being approved with bad credit or in bankruptcy have increased dramatically. In certain parts of Canada, if you file a bankruptcy and can support a car payment, then you can qualify for a bankrupt car loan. There are of course certain restrictions and requirements involved.
The Right Decision
Make the right decision about a car loan. Before you ask yourself if you can afford a car loan in bankruptcy, you should first consider: do you need a car loan?
If you’re certain that you do need a car loan, then its time to ask yourself: can you afford a car loan?
If you can manage a car loan while in bankruptcy, you have a regular source of income and your bankruptcy payments are up to date, then you might qualify.
Find a Car Dealer
Remember that getting approved for a car loan in bankruptcy is not an automatic process and that goes for the dealer as well. While there are hundreds of car dealers in Canada that claim to finance or get financing for any type of bad credit, few can actually deliver on that promise.
When you first approach a car dealer, ask them if they deal with specialized or non prime credit. If they don’t immediately make you feel comfortable about their abilities and your bad credit situation, then you should consider another store. A professional special finance car dealership will always be respectful and knowledgeable about bad credit, auto financing options and bankruptcy law in Canada.
Please remember when looking for a new or used car that the quality and professionalism of the car dealership is just as important as the car you’re buying! Only buy a car from a registered car dealer that you are comfortable dealing with.
Visit Bankrupt Car Loans and learn more about car loans in bankruptcy,car loans and how to repair bad credit with an after bankruptcy car loan. Thanks to Canada’s New Bankruptcy Laws, Ontario is seeing an increase in Canadian consumer proposal’s. In Ontario its possible to get approved for an auto loan in consumer proposal – find a special finance dealer and get approved today!
Thanks and good luck from Any Bad Credit Canada.