buying a car after bankruptcy

January 14th, 2008 by Questions

We filed for bankruptcy in the fall of 2006 and were discharged in August 2007. We are considering getting a new vehicle soon as our car is starting to need repairs that are worth more than the car itself. We`re in Ontario and I`ve noticed a lot of dealerships offerring guaranteed financing (good credit, bad credit, past bankruptcies, etc).

There are a few things I`m wondering about – financing or leasing – is one better than the other as far as rebuilding credit goes?

My major concern right now though is the cost of financing – what kind of interest rate will we be charged compared to someone with a good credit rating? And how will that affect the overall cost of the vehicle (and therefore our monthly payment)? The company we`re looking at has an online credit application and I`m wondering if it would hurt us to apply right now (to see what we could get, and what interest rate we`d be looking at), if we`re not actually planning to buy until the spring?


One Response to “buying a car after bankruptcy”

, A licensed trustee said:

I’m sorry, but there’s no real guidance to give you on this subject – there are too many variables. I can tell you it is unlikely you will qualify for any of the low interest dealership deals, if someone affers you financing at a point or two above market you’re doing good – if they try and finace you at 18%+ you should try and hold off another 6 months if you can…

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