Chapter 7 Bankruptcy Car Loans

More now than ever before, many people are searching for chapter 7 bankruptcy car loans. With today’s economy, people find themselves filing chapter 7 bankruptcies to relieve themselves of too much debt.

When someone files for a chapter 7 bankruptcy they are filing with the court system asking that they be discharged from all unsecured debt. Unsecured debt includes such things as medical bills or credit cards.

Compare this to secured debts such as your home and your vehicle. Due to homestead protection laws your home is safe from your creditors acquiring it. With a chapter 7 bankruptcy, your car loan may need special consideration.

In some cases, people are finding that they must release their vehicle along with the discharge of other debts. This may be caused by a couple different situations. One reason may be that they have simply fallen too far on the payments. Or another reason may be because the monthly payment is simply too high to make and stay current with the new finances.

If this is the case for you, you may be in the market for chapter 7 bankruptcy car loans. These are considered sub-prime auto loans and you may be able to apply a few months after your discharge has occurred. Depending on some situations you may not have to wait this out and can apply as soon as you are discharged.

Because not all lenders work with those who have recently filed chapter 7 bankruptcies, it will require a little research to find a dealership that may offer you this specialty loan. Doing an internet search will help you locate a couple of resources near your home.

The next thing to do would be to take a good hard look at your new monthly budget and determine realistically what type of payment you can handle each month. Being prepared with this figure can help ensure you are not smooth talked by some salesman to buy a more expensive car. The biggest key after bankruptcy is to be sure that you live within your means and can make all your new payments on time.

Now collect a few pieces of documentation to bring with you when you visit a car dealer or auto consultant that offers chapter 7 bankruptcy loans. This would include a couple recent check stubs to show proof of your income. Also bring your driver’s license and proof of insurance. And the final thing to bring with would be a couple utility bills. This will serve as proof of residency.

You are now prepared to pay a visit to the dealership or the auto consultants office. Tell the salesperson your situation and the particular reasons that you had to file the bankruptcy in the first place. Ask them if there is anything else you can provide to help make the loan process a little better. Use the advice of the expert to give you the greatest chance at getting a chapter 7 bankruptcy auto loan.

Zero Percent Financing: A Consumer Benefit Or A Marketing Trick?

In recent years, zero percent financing has become an increasingly popular financing option offered by most car manufacturers on new cars and trucks. While it does sound great and is extremely appealing to many car buyers, there are few things attached to it that may diminish the benefits.

Commonly, car dealers offer an alternative of a zero percent financing or a cash rebate on the vehicle purchase price. Let us say, that you are confronted with an offer of getting a cash rebate of $3,000 or a zero percent financing. While you are going to have no interest to pay, you will end up paying $3,000 more for a vehicle that you may have saved otherwise. Should you pay off your loan early, the advantage of taking zero percent financing would become null.

It is important to keep in mind that any car is a quickly depreciating asset. Taking a rebate instead of a zero percent financing incentive may help you to reduce the gap between the loan balance and the vehicle fair market value. Since your car depreciates most in the first year of use, having it totaled or stolen may leave you upside down on your zero percent auto loan since your insurance company would not cover extra $3,000 you paid for your vehicle. That means that you would have to come up with the difference to cover the remaining loan balance.

It is important to remember that nothing is truly free in this life. Financing incentives, typically coming from the corporate offices of car manufacturers, are most commonly hidden in the vehicle selling price. Car dealers, sometimes offering zero percent financing on their own, follow the same strategy.

How Does It Work?

While it is somewhat understandable how financing incentives offered by auto manufacturers work, zero percent financing offered solely by a dealer may raise your eyebrows. Obviously, banks are not going to finance you at no interest, no matter how good your credit is, since they have to make money off you to stay in business.

What usually happens is that auto dealers rebate the bank upfront for the interest charges that a customer would accrue and pay to the bank otherwise. In simple terms, your dealer pays your interest for you. Since they are not going to make it a money-losing proposition, they have to compensate these expenses somehow. That is why these costs are built into the vehicle purchase price.

Typically they are offset by a rebate that a car manufacturer would give you on a new car purchase and/or an incentive that an automaker gives a dealer for higher volume sales. What this also means to you that there is less negotiation power on your side, since a dealer would be less eager to go down on a vehicle price in this case.

Financing Incentive or a Cash Rebate?

What this means to you is that a simple mathematical equation needs to be solved. When approached with a choice between the rebate and a zero percent financing, calculate how much interest you would normally pay on a car loan and compare it to the amount of rebate. If your interest charges are going to be greater, it may be time to consider zero percent financing. Should they be not, take the rebate and run away from the zero interest deal!

Guaranteed Auto Credit From Auto Net Credit Centers

Presently, there are many Auto Net Credit Centers that auto finance endorsements from instant Easy Credit Auto marts in the USA. Now you can even get an okay for Instant Car Loans from banks, credit unions and even from any local auto mart even if you have a poor credit balance. After completion of the auto loan endorsement, an agent from the department will immediately process your request. The representative will then contact you and discuss what you need to settle on which car loan option is suited best for your circumstances.

Easy Credit Auto sales are meant for people who face credit problems that do not meet the criteria for loans from banks and credit unions. This online car loan application is completely secure and if anyone is planning for a car loan, these auto credit centers are the right place as they have made it easy for anyone in the United States with credit problems to buy a car. There are many reasonable auto credit loan choices for consumers with fair, poor, no, slow and low credit scores.

An instant credit approval depends on what information the applicant submits online. All information, for example where employed and salary has to be verified. The applicant should be as precise as possible while completing the online easy credit application form. If any part of the information submitted in the application does not match with what is verified, the instant car loan authorization will be annulled.

So if the salary, employment and all other information submitted is correct after verification, the guarantee of the car loan will be approved. All approvals are based on what is affordable on a monthly basis. Money down will be required if the car that is bought is more than the approval amount.

While applying for a Guaranteed Car Finance agreement, the applicant should set realistic expectations like selecting the right car, as this is the most vital part in getting a Guaranteed Car Finance loan approved. As soon as the auto mart sets a financial plan for the applicant, they usually give the nominee a choice of three or more cars. Once the selected applicant picks a particular car, he/she should have it thoroughly checked by an ASE Certified Master Mechanic.

The next immediate thing to reflect on is the Guaranteed Auto Credit as the loan term should preferably be kept as short as possible. If there is enough space in your budget once you’ve cut down on the term, consider the purchase of GAP insurance and/or an extended warranty to cover the length of the financing contract. In particular, the first auto loan with poor credit will have the interest rate quite high, so the shorter the term is kept, the less the interest paid.

So now with so many Auto Net Credit Centers an easy auto loan approval online is easily available. This premier EZ application will take just a minute to complete. All information submitted by the consumer is kept completely private and guaranteed secure.