Going into a Car Dealership can be a daunting experience, and even moreso if you have filed for bankruptcy and are wondering how, if at all, this will make a difference. Will you get ripped off, denied, or unfairly taken advantage of after a Chaper 7 bankruptcy? If you are in an active bankruptcy case, you will of course want to check with your lawyer before you buy a new car, get rid of your existing car, or make any other major purchase. If your bankruptcy is closed, here are some tips to make the car buying experience a better one for you:
- Don’t walk into a car dealership and announce your bankruptcy. This could result in an unfair “jacking up” of the price. Once a price is agreed upon in writing for the vehicle you want and they run your credit for financing, the bankruptcy will then be revealed and can be dealt with. The bankruptcy may result in a higher interest rate or the necessity of a co-signor on your car.
- Don’t assume that you can’t get a new car just because of your bankruptcy. Be smart and be careful to protect your finances now that you have a fresh start, but do what you have to do.
- Make sure that any dealership you are considering is reputable.
- Know what a vehicle is worth before you shop. NADA Guides are a great resource and while you may have to pay more interest for your new car, you shouldn’t have to pay more for the car itself just because you were in bankruptcy.
If you need a new car and also need to file for bankruptcy and aren't sure what to do, you're not alone. If you live in Chicago or the surrounding suburbs, contact O'Connor Cadiz Law for help and set up a no- obligation consultation. We have offices in Schaumburg or Itasca.