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How to Buy a Car after Bankruptcy in Hannon

How to Buy a Car after Bankruptcy in Hannon

The cost of owning a car in Canada is relatively high and growing by the day. If you need a newer vehicle but were recently discharged from bankruptcy, you know how challenging it can be to get financing for a new car.


New car prices are close to $50,000, and used cars are not far behind, so saving up enough money to buy a new car with cash is virtually impossible, especially with inflation driving up the cost of living.


So, your only hope aside from winning the 6/49 is to get a car loan, but who will give you a second chance after bankruptcy in Hannon?


This is where we come into the process; if you stick with us to the end of the conversation, then you will be able to buy a new car after bankruptcy in Hannon.


When were you discharged from bankruptcy?


By law, you cannot take on any new debts until you are officially discharged from bankruptcy.


Your bankruptcy trustee will give you an official discharge certificate; if you do not have it, you must ask for it before you can proceed.


Generally speaking, the bankruptcy will stay on your credit report for seven years, but you have a clean slate.


It is now time to start rebuilding your credit, and there are products available to help you achieve that goal.


Sign up for secured credit cards from Capital One Bank and other financial institutions that provide these services.


You deposit money into the account, which is a surety should you not repay the debt.


Then, every month, you receive an invoice that you need to pay on time. If you pay the bill on time, it will be reported to TransUnion and Equifax, which helps you rebuild your credit. This will take time, but it is worth it over the long haul.


Reviewing your budget


While you are working on rebuilding your credit, you need to assess your budget to see if you can afford a car payment.


Since your debts have been wiped clean, you should have room, but you need to look at your total income. The average car payment not including insurance can easily exceed $600 a month, so you need to budget accordingly.


How to find sympathetic lenders in Hannon


There are over 100,000 Canadians who file for bankruptcy each and every year; this does not include those who submit consumer proposals.


All of these Canadians need a car to live, but there is no one serving their financial needs.


Fortunately, things have progressed, and there are lenders that cater to consumers who recently went through bankruptcy.


If you try to find them online, you will not be able to; these lenders work through dealership channels. These lenders service a niche clientele and rely on dealerships to find them, customers.


You will need to go through a local car dealership that provides second chance financing; this is your only surefire way to get a car loan after going through bankruptcy.


So, the next thing you should do is contact your local dealership and start exploring your options; it will be the best call you make all week.


We’d love to help you buy a car after bankruptcy in Hannon. Simply fill in the form below and we’ll get back to you ASAP! 


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