How to Buy a Car in Ohio After Bankruptcy
A bankruptcy can wipe out your debts, but it also leaves your credit score in shambles. Bankruptcy takes up to ten years to drop off your credit report, and even with steps to rebuild your credit score it can take several years to see results. If you're an Ohio resident, chances are you don't take public transportation to work. If you're in the market for a new car and you've recently filed bankruptcy, securing a car loan can seem like an impossible feat. If you're willing to make some sacrifices, you can purchase a new car, even after bankruptcy.
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Instructions
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Look at your monthly income versus your monthly expenses to determine what you can afford to spend on a vehicle. Don't forget to factor in insurance rates. Write down what you can realistically afford and stick to that number.
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Lower your expectations. If you're rebuilding your credit, you won't qualify for a low-interest loan. You may even be denied for a traditional bank loan or require a co-signer. Many dealerships will also require that you make a sizable down payment.
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Consider purchasing a used vehicle from a "buy here, pay here" dealership. These dealers usually do not require credit checks and will set you up on a payment plan where you pay the dealership directly, sometimes weekly or bi-weekly. You may not get the flashiest vehicle, but if you shop around you can find a reliable car that is within your budget. Ohio has a wide selection of "buy here, pay here" dealerships.
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Make payments on time to help rebuild your damaged credit. If you purchase from a "buy here, pay here" dealership, ask if it reports to credit bureaus.
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References
- Photo Credit multi-coloured cars image by Ivan Hafizov from Fotolia.com
