Buying a Car in Bankruptcy: Smart Tips from Cameron Bankruptcy Law

Buying a car can be one of the biggest purchases you make, right after a house! But here’s the thing – car dealers sell cars every day, while most of us only do it once every few years. So, who do you think is going to get the better deal? If you’re not careful, it might not be you!

Buying a Car During Bankruptcy

Did you know you can buy a car right after filing for Chapter 7 bankruptcy and even during a Chapter 13? In a Chapter 13, though, you’ll need court approval if the car loan is over $10,000, and that process can take about a month. But don’t worry – with some preparation, you can still get a great deal!

New or Used? What’s Best?

Before you start car shopping, decide whether you want a new or used car. A new car loses about $2,000 in value as soon as you drive it off the lot, but you might get better interest rates. On the other hand, a used car could still be under warranty and might save you some serious money, but there’s a risk of buying someone else’s headache.

At Cameron Bankruptcy Law, we recommend going for a used car that’s about two years old. Why? You’ll save a lot on the price, and by then, any major issues would likely have already been found and fixed. It’s a smart choice for your wallet!

Find the Right Car for You

Do your homework! Research cars that fit your needs and budget. Websites like Consumer Reports can help you look up reliability, depreciation, and mileage. Don’t forget about insurance costs – sometimes a simpler car comes with cheaper insurance rates. A two-year-old Toyota Camry, for example, is a reliable and affordable choice, even if it’s not the flashiest car on the road!

Get Pre-Approved for a Loan

Before stepping foot in a dealership, get pre-approved for a loan. Even if you don’t plan to use it, a pre-approval shows dealers you’re serious and gives you a baseline for interest rates. Dealers often add a few extra points to their loans, so make sure you know what a good rate looks like before you start shopping.

We’ve found that Kera Hansil at AskCousinKera.com (919) 275-5372 often offers great deals on loans and vehicles. Tell her Kerry sent you!

Shop Around for Dealers

Not all dealerships are created equal! National brands tend to be more reliable, but always check reviews. Be wary of smaller used car dealers, as they may try to rip you off. Also, consider driving a little farther for a better deal – many dealers offer perks like free oil changes or warranties.

Ready to Buy? Be Prepared!

Once you’ve done your research and found the car you want, make sure to print everything out and bring it with you. If you’re buying used, always get the CarFax report yourself – don’t rely on the dealer to provide it, as they could give you a fake or incorrect one.

Keep Your Knowledge to Yourself

Don’t let the dealer know how much research you’ve done! By knowing the fair price and interest rate, you’ll have the upper hand. Dealers may offer a great price on the car, but then sneak in a higher interest rate to make up the difference. Or they might sell you on expensive add-ons. Be cautious and negotiate everything upfront!

The Age of the Car Matters

The longer a car sits on the lot, the more desperate the dealer is to sell it. Dealers borrow money to keep cars on their lot, so they’ll be eager to get rid of older stock. Additionally, national brand dealers often get bonuses at the end of the month for meeting sales quotas, which means they may offer better deals to reach their goals!

By following these tips, you’ll be better prepared to get a great deal on a car, whether you’re in bankruptcy or not. Remember, doing your homework and being ready to negotiate will give you the edge!