Generally speaking, if you aren’t in desperate need of a vehicle after getting out of your bankruptcy, you should start rebuilding your credit with less costly financing options first. Vehicles are both expensive and long-term propositions. So it may make sense to rebuild your credit with less expensive facilities before going after a car loan.
7. Used vehicles may represent a better overall deal (and help you more).
In general, a later-model, used vehicle with relatively low mileage may make for the best car deal. In many cases, they may still be under warranty, they have most of the “drive-off” depreciation already factored into the price, and they cost less than a new car or truck. Because of all these factors, a used car probably makes more sense than a new one when you have emerged from bankruptcy.
8. Work with a lender who knows you.
If you have a lender who knows you and knows about your bankruptcy situation, it may make sense to approach them with your financing requirements. This is especially true with a situational bankruptcy where you had a good credit history before the event that created your financial distress. In addition, if this lender has a history with you of you making payments prior to the bankruptcy they may be more willing to work with you.
