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How to get a car loan in Lincoln after a recent divorce

How to get a car loan in Lincoln after a recent divorce

If you were, or are currently, going through a divorce, your finances can be turned upside down. Numerous financial challenges come with divorce, one of them being who gets the current family vehicle.

If you need a new vehicle and place to stay, it can take its toll on your finances, especially if you have to pay child support.

Our Lincoln auto loans team has come up with some key tips to follow, so you can get a new car to help you traverse your new life.

Having a detailed financial plan

One of the things that your prospective Lincoln car loan providers will want to know, is who will be responsible for the debts accumulated as a couple.

On your credit report, you and/or your spouse may be joint account holders, which means each and/or both are financially liable for all transactions.

The biggest challenge you will experience when trying to get a car loan in Lincoln is the total amount of debt you are servicing. Lenders typically will not give a loan exceeding 42% of your take-home pay.

If you are currently paying a mortgage, car payment, credit cars plus other expenses and now you want to take on another car loan plus rent, it can really through your debt-to-income ratios out of whack.

This is why you need to have a copy of your divorce settlement and income documents, so you can explain your circumstances to the prospective lenders.

Finding the right lender

You will not be able to find a lender who can help you get a car loan if you are just recently filed for divorce. The only way you can get a loan approved is to work with someone who has experience with these loans.

Start the process by contacting a local car dealership and meeting with them in person. Since we are entering a post-pandemic world, we can now have face-to-face meetings.

The purpose of the visit is to provide the dealership with a clearer picture of your current situation, this conversation will help the dealership communicate your needs to prospective lenders.

You are not the first person to go through a divorce nor are you the last, the dealership has helped people in your situation so rest assured they can also help you.

During the conversation with the dealership, they will also give you suggestions on how you can boost your credit score. This advice will save you money over the long term as your cost of financing is linked directly to your credit score.

It would also be prudent to make sure your ex-spouse has no claim or ability to put on a lien on your new car purchase. Depending on how your divorce is structured, this is something the dealership and your lawyer can discuss with you in detail.

You are going to feel liberated getting behind the wheel of your new car, and while you may feel anxious about the future at least you know your finances will be in good shape going forward.

When you’re ready for a car lease or loan, get in touch with the Lincoln auto loan experts at Northway Ford for great deals on auto finance.

Categories: Car Loan

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