Buying A Car After Bankruptcy Is Easy

Buying A Car After Bankruptcy Is Easy

Following any bankruptcy you will be debt free. However the consequences of a bankruptcy discharge will soon become apparent. You name will be listed on a bankruptcy marketing list which means you will soon be receiving lots of consumer credit and credit card offers. About 99 percent of these offers are scams that will quickly send you back in to financial crisis.

Frequently your bad credit record will prevent you from apply for loans necessary to make large purchases like homes and vehicles. Buying a car after bankruptcy is just such a problem. Owning a reliable vehicle is critical to getting on your financial feet after a bankruptcy. It is an essential tool that is necessary for everyday life and most importantly it allows you to get to and from work each day.

Depending on the bankruptcy location and stipulations you may or may not be allowed to keep your existing car or truck. In many cases your record of bankruptcy will be on your credit records for between 7 and 10 years. During this period you most likely will have to replace your existing vehicle with a new one. In some circumstances people may be prevented from buying a car as a result of their bankruptcy record.

If you have developed a good budget and are living on a cash basis you should be setting money aside for future vehicle purchases. It may take you some time to accumulate enough money to make a major purchase like a car. However there is an alternative that will allow you purchase reliable transportation and not go into debt while doing so. Staying out of any debt is the key to success in life.

The simple process requires you to save at least between $2000 and $4000 dollars. This can be done by selling stuff you do not need and getting a second or part time job. Once this has been accomplished then it is time to start looking for a used car that you can pay cash for. The key here is to pay cash. If you have a friend that knows vehicles you should enlist their help during your vehicle search. Reliability not looks is the key at this step. You may even consider having the prospective vehicle inspected by a reliable mechanic before you make the purchase.

After making the purchase make sure you take care of the vehicle so it remains reliable for the next several months. During this time you must continue to put money aside for the purchase of another and much better used vehicle. Once you have saved an additional amount of money you should begin looking for your newer used car. Once you find a vehicle that meets your needs you then use the equity of the first vehicle plus the money you have saved to make the purchase. You repeat this process until you have a reliable and good looking used car. If you are wise you will keep your second job and keep putting money away for a future vehicle purchase. Forget about purchasing a new car unless you are a millionaire. Only a fool would throw away $10,000 dollars when purchasing a new car. That is just what you do when you purchase $25,000 new car. As soon as a new car is sold it loses 30 to 35 percent of its value. Just how stupid is that?

As you can see buying a car after bankruptcy without going into debt is relatively easy. Following this simple process of purchasing used cars each more valuable than its predecessor will help you to acquire the vehicle that you need and want. Remember a quality used car has about the same value as a new car that was just sold and driven off the new car sales lot. Yes it does require some work but if it keeps you out of debt then it is worth it.

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