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?