Going through bankruptcy is one of the toughest financial experiences that many people will have. Not only can the process be scary, but it can also become somewhat of a legal hassle. There are so many considerations that it can be difficult to know what to do next. And for many people, financial problems don’t just come one at a time—they pile on. This is why it’s not uncommon for individuals to discover that their vehicle is on its last legs or completely broken down—just as they’re going through bankruptcy. Here are a few important things to keep in mind if you’re going through bankruptcy and need to find a car.
Although you may be going through bankruptcy right now, the credit agencies may take a few months to report your situation to lenders. Provided that you can afford payments, you may want to get yourself to a dealer right away. A recent bankruptcy can be a big red flag to lenders, so why put yourself in that situation unless you must? Log on to free credit reporting sites and see where you stand on paper. You may be pleasantly surprised. You may be experiencing tough financial times, but there’s no need to relinquish your power. Make fast, well-guided decisions—and remember not to spend a penny more than you can afford.
Consider Rent-to-Own Places
If you have a bankruptcy on your record, it’s important to think outside of the box when it comes to acquiring a car. Right in your area, you may even find a repair shop or used car outlet that will permit you to make payments on a used vehicle. The good news is that these deals often do not require a large down payment, which can be a godsend for those who are trying to dig themselves out of a financial rut. Of course, you’ll want to do your due diligence and ensure that the vehicle is free of major defects. Having a trusted mechanic take a look is always a good idea, and you’ll want to make sure that all of the paperwork is in order for you to purchase the vehicle once you’ve finished your payments.
Become a Rideshare Driver
Companies such as Lyft and Uber often offer car lease programs to incentivize new drivers to start. This can become an excellent source of part-time income for many, depending on where you live. Obviously, there’s often a higher demand for drivers in urban areas. But for those who are seeking a way to become financially flush and have access to a relatively new vehicle after a bankruptcy, this option kills two birds with one stone.