Can I Get Financing for a New Car in NJ After Bankruptcy?

7/8/2020

You have a low credit score, need a vehicle, but have no idea where to start. You are not alone. Every year, thousands of potential car buyers are faced with financial difficulties they think might hurt their chances of getting a new car. This is especially true for individuals who have gone through a bankruptcy process. However, as you will learn through this article, getting a car even after bankruptcy is possible. Our Washington Township used car dealership, Apollo Preowned Auto, invites you to keep reading to learn more about this critical matter.

Will Bankruptcy Prevent Me from Financing a New Car in NJ?

There are two main types of consumer bankruptcy individuals can use to manage excess debt: Chapter 7 and Chapter 13. Through Chapter 7, you work with your creditors, sell some of your property, and pay your creditors to get a discharge. Through Chapter 13, you work with a repayment plan, which can help you pay your creditor over a three to five-year period. The good thing about bankruptcy is that it enables you to get rid of most of your unsecured debt and allows you to have a financial start. However, the downside of bankruptcy is that it may affect your credit score and can stay in your credit history for years.

Many individuals who have gone through bankruptcy may be concerned they will not be able to finance a new car. However, today more than ever, many lenders are willing to work with people with a low credit score and help them finance their vehicles. Financing a car after bankruptcy may seem difficult, but it is not impossible.

One of the ways you can get financing to buy a used car for sale in NJ is through a pre-owned auto dealership. Through our Cherry Hill, NJ used car dealership, you can get financing options to acquire a safe, reliable vehicle at a competitive price.

Some people think that getting a used car with bad credit is a bad investment. However, over the years, the pre-owned auto industry has been growing exponentially due to its many benefits. Getting a new set of wheels after bankruptcy in NJ is possible.

What Should I Do to Get Financing for a New Car After Bankruptcy in NJ?

As mentioned, you can get financing for a car after going through a bankruptcy process in NJ. However, before you visit your New Jersey pre-owned auto dealership, there are several things you should consider. The last thing you want is flying in blind to your dealership without understanding all of your options. Following the following steps can help you ease the financing process for your car after going through bankruptcy.

Check Your Credit Score

Checking your credit seems obvious. However, it is not surprising to see potential car buyers visiting their dealership without a clear idea of where they stand credit-wise. Knowing your credit score before going car shopping can set you up for a better car-buying experience. You can look at your score by requesting a report from any of the three major consumer credit bureaus: Experian, TransUnion, or Equifax. It is always recommended to perform a credit check at least once a year or before you decide to make a significant investment. Having a clear understanding of your credit can help you with the next step.

Try to Rebuild Your Credit

Your credit score may not be stellar after a bankruptcy process. However, this doesn’t mean a bankruptcy discharge is bad. After your bankruptcy, you can get an exact credit score number to work with. It is essential to keep in mind that financing institutions will consider your credit score when deciding to finance your car. You can take advantage of your discharge and start working towards rebuilding your credit score. Make sure you meet any existing monthly obligations on time and avoid engaging in significant spending (especially with credit cards), as it can negatively affect your overall score. Maintaining healthy financial habits can help you ramp up your score over time, which can lead to a better financing experience.

Save for a Down Payment

Not everyone has the money to pay for their car in full right off the bat. Most consumers depend on financing to make their car purchase possible without risking any other financial obligations. Saving for a down payment can be an excellent way to reduce your monthly payments and save money over the life of your car loan. Ideally, you’d want to save 20% of your car’s value for a down payment. However, if you think 20% is too much, you can strive to save up to 10% of your vehicle’s overall value and use it for your initial down payment.

Look for Alternatives

You should also look for different alternatives around the market. As mentioned, many lenders are willing to work with you. Shop around, make inquiries, and compare rates for your car loan. Getting pre-approved for a car loan can be an excellent way to have a clear idea of what you can expect when you submit your formal application.

At Apollo Preowned Auto, we have worked with thousands of customers who have faced financial difficulties but need a high-quality, reliable, and affordable car. We can help you get pre-approved for your car loan and walk you through the entire car-buying process. Whether you have gone through a bankruptcy process or have a bad credit score, we can help you get the car you want.

Pre-Owned Auto Dealership Financing High-Quality Cars in New Jersey

If you or someone you know has gone through bankruptcy and is looking to invest in a new car, we can help. Our New Jersey, pre-owned auto professionals from Apollo Preowned Auto, can help you get the vehicle you want, even if you have a low credit score. In addition to financing, we can provide you with other excellent services, including auto detailing, oil changes, and bodywork. Call us today and schedule a visit to our dealership and learn how we can help you with a bad credit auto loan and financing in NJ. Our phone number is (856) 347-5091.

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