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Buying A Car After Bankruptcy? These Suggestions Could Help
By: R. Lawrence Anderson
If you are buying a car after bankruptcy, here are a few suggestions that could
help:
First, you want to make sure you've done everything you can to increase your
credit score. Once you've done that you're ready to start shopping for your car!
Here's a question for you: Is it better to get outside financing or get
financing through the dealership when you are buying a car after bankruptcy. The
answer is... drum roll please... it depends!
It's worthwhile to apply for outside financing when buying a car after
bankruptcy. But make sure you do it through the right lender. If you don't, you
could end up paying $100s or $1,000s more in extra interest. If you even get
approved at all.
Now let's assume you've done your homework. You found the car you like, you know
how much that make and model sells for, and you know how much your trade in is
worth. It's time to visit the dealership...
Let's say you find the specific car you want to buy. Now you're going to need to
negotiate the price.
If you lined up outside financing, then you're in a good position from a
negotiating standpoint. But what if you could not get outside financing for a
car after bankruptcy? What if you need to depend on the dealership to get you
financed when buying the car after bankruptcy?
Many people think that since they had a bankruptcy they are at the mercy of the
car dealership in this situation. THIS SIMPLY IS NOT TRUE!
Let me share a little secret with you: If the dealership has run your credit
report and they start negotiating with you, then they're pretty sure they can
finance you. After all, do you really think they would waste their time
negotiating a price with someone they did not think they could finance? Of
course not!
Here's where things get interesting. How many times a year does the dealership
negotiate with buyers? Probably hundreds of times a year at a decent sized
dealership. Now what about you - how many times do you negotiate for a car? If
you are like most people, it's probably once every so many years.
Most people will thoroughly research the price of the car they want to buy. If
it's new they'll take time to find out the dealership's cost and, if they have
one, the value of their trade in.
...and they'll go back and forth with the dealership for two or three hours
until everyone agrees on the numbers and a sale takes place.
Chances are the buyer still may have left a pile of money on the table - and
didn't even know it. The reason the buyer probably left money on the table is
that they more than likely made two critical mistakes without even being aware
of it. One mistake was that they didn't negotiate all five parts of the sale
separately. The price of the car is just one part.
On that note, another step you will want to take is to improve your car buying
skills. How? Visit websites that provide car buying tips. Another way is to pick
up a good book on how to buy a car - you can find quite a few of them out there.
Unfortunately, I have not run across any that provide specific information on
buying a car after bankruptcy. However, After Bankruptcy Credit Solutions does
cover this topic in detail - so the information is out there.
Other than a home, buying a car is one of the bigger purchases you're going to
make. You need to AVOID any mistakes that can cost you up to $100s or $1,000s of
dollars in extra interest. In other words, you simply can't afford not to get
things right when you're buying a car after bankruptcy.
This article covered some steps you can take which could help when buying a car
after bankruptcy. Put them to use and they could save you from making some
expensive mistakes!
Copyright © 2006 Innovative Solutions Publishing, Inc. All rights reserved.
DISCLAIMER:
This information is designed to provide only a general overview of the subject
matter herein.
This information is provided with the understanding that neither the publisher
nor author is engaged in rendering legal, accounting or other professional
advice. If legal or other expert assistance is required, the services of a
professional should be sought.
Neither the publisher nor author shall be liable for any loss or damages,
including but not limited to special, consequential, incidental or other
damages, caused by the information contained herein.
About the Author:
R. Lawrence Anderson is the author of After Bankruptcy Credit Solutions, which
shows individuals how to qualify for credit and loans after bankruptcy - it also
covers the topic of buying a car after bankruptcy.
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