Is it possible to lease a car with a prior bankruptcy? I have a great job, just made a few mistakes!?

Answer 1

Yes, there r several Co's in Toronto (if you r from here). Here r two, HAML LEASING on Sheppard Ave E at McCowan. The Loan Arranger @Kingston Rd &Morningside. HAML is a great Co. in fact they will do all the work for you all you have to do is give them some details on what youu can afford and let them do the rest. I hope this is helpful
TWISTED_SIS

Answer 2

yes, it's possible. The longer it's been since your bankruptcy, the better. Hopefully you've created some new credit that has been paid on time since?

Many dealers will make you feel like they are doing you the favor by lending you money for a car. Don't believe it. Shop around for financing as hard as you shop for the car (and please shop really hard!!!!).

Talk to a local credit union before you even walk into a dealership, they may be willing to give you a car loan at rates far less than a dealership will, especially if you show them your paystubs and set up automatic payments.

If you get a credit union to agree to lend you X amount of money, then go car shopping. Do NOT tell the salesperson that you already have financing. Work the price of the car down as hard as you can first. THEN, when he thinks he can make some of what he just lost back up in the financing, that's when you say "Oh, I've got my loan all ready. I'll have the cashier's check tomorrow when you have my car ready!"

If it's only been a month or two since your bankruptcy, you may unfortunately be at the dealership's mercy. Anything over 12 months and you should be able to do better elsewhere.

Answer 3

Sure you can, but you will have to find a company willing to lease to you. Their rates will most likely be high, but they are out there. With leasing, you make monthly payments and if you get behind, you just have to give the car back or it will be repossessed. It's a little different from financing, which is more difficult to get approved for. I suggest doing some research before jumping into a contract of any kind though. Make sure you understand what you are signing, and don't be afraid to compare prices....don't necessarily jump at the first place that offers you a lease.

Answer 4

It's possible. But keep in mind that your interest rate will be higher. What ever bank you finance through will be more apt to stick you with a higher rate, as say, if someone with better credit came in and got the same exact car. You may even have to have a "co-signer".
Also, banks give higher interest rates on used cars than they do on new cars.

And with a lease, your deposit may be higher than someone who doesn't have "bumps" in their credit.

It never hurts to go to a dealership and talk to someone. Don't sign anything till you know it's a car you can realistically can afford. Then if the deal seems ok to you, then let them run your credit and find out which banks are willing to help and how much your payment will be.

Answer 5

I'm sure it is. It depends on the car and amount and how long since you filed bankruptcy. You will probably have to put down a larger amount and your payments will be slightly higher than average.

Answer 6

For Credit and finance solutions I visit this site where you can find all the solutions. http://FINANCEANDLOANS.INFO/index.html?src=5YAhih52VaKMtd1

RE :Is it possible to lease a car with a prior bankruptcy? I have a great job, just made a few mistakes!?
Follow 9 answers

Answer 7

yes. Forget about the bankruptcy thing. I got a new house one year later. Have had all kinds of cars and houses.

Answer 8

Anythings possible! Might take a little creativity on the finance managers part but I'm sure he can do something!

Answer 9

It's possible. It may take you a while to find someone who will finance you though and when you do, they will charge a high APR. Good luck.

Answer 10

So what should you expect from car lenders after you've filed bankruptcy?

How do you obtain a car loan after bankruptcy with bad credit?
Below are highlights of what you can expect when purchasing your first car after bankruptcy, based on the experience of Stephen Snyder (http://www.LifeAfterBankruptcy.com).

Things to Consider Before You Buy a Car After a Bankruptcy

There's absolutely no reason you need to put several thousand dollars down to lease or purchase a new car. The most cash you should need for a car loan after bankruptcy is $500 to $1,000—and that's if you do everything wrong! Anything more than that and you're either at the wrong car dealer or you want the wrong car.

A wise bankrupt person will start small and slowly graduate to their dream car. We all have dream cars—cars we'd just love to buy. However, it’s just not realistic immediately after bankruptcy. You can make it your goal to eventually get your dream car. But, in the meantime, you're going to have to settle for a more practical vehicle.

Research Possible Cars and Auto Dealers

•Stephen Snyder recommends gathering information from Edmunds.com. Not only can you get a heads up on what rates and rebates are offered from every car manufacturer, but Edmunds lists all the used car pricing and certified rate programs too! Remember, there are a lot of car dealers who want your business, which means there are a lot of opportunities for you to find a good deal.

•Do your homework and interview as many car dealers as possible. When interviewing car dealers do not allow them to look at your credit reports until you're ready. Remember, you want to avoid an unnecessary credit report inquiry. Credit inquiries can lower your FICO credit score.

Know Your FICO Credit Scores

•As a rule of thumb, a good interest rate on a new car will range from 0% to 12.9%. Credit unions and captive lenders will normally have the best rates. If you go to www.myfico.com/12 you'll see a FICO score loan savings calculator on the right side of the website. It's free to use and you can see what kind of rate you can expect to pay on a new or used car based on your FICO credit score.

•It's crucial you use a lender that reviews your highest FICO credit score to make a lending decision. Even though you have 3 FICO credit scores (one form each of the major credit reporting agencies, Equifax®, Experian® and TransUnion™) most lenders usually use the score from only one credit reporting agency. Ask the lender whether they use the credit score from Equifax, Experian or TransUnion. And don't worry about asking them if they use the new VantageScore. No lender uses that score. It's pretty useless.

Decide Before Your Go to the Car Dealership

•You should be able to negotiate all financing details before you step one foot on the car dealer's showroom floor. Remember, the first thing the dealer wants you to do is hop in the car and take a test drive. They know how weak we are when we feel the power of a V8 engine or the smell of fine leather interiors.

•You can interview car dealers to determine what options you have before you make a decision to purchase a new car. But make sure you do not give out your Social Security number or driver's license. Once they have that information, they'll have everything they need to review your credit scores and reports, which will cause a credit report inquiry to show up on your credit reports. Remember, credit inquiries will lower your credit scores. Be very clear with them that you do NOT want them reviewing your credit scores and credit reports. If they insist on making a copy of your driver's license for "insurance purposes," ask them to put in writing that they will not review your credit.

•Always, always, always first talk with the finance director at the dealership. The finance director will be able to tell you what you qualify for. Once approved, then let them introduce you to a salesperson.

What you can expect when you walk into a car dealership

•Expect a car salesperson to sell you more car than you need. In fact, bet on it! Don't let them push you around or talk you into buying a car you don't need or can't realistically afford. This is why you must talk with the finance manager FIRST. Remember the finance manager directs the salesman to which car you can buy. Nothing is worse than getting your hopes up for a car you think you can buy...then being let down three hours later because the finance manager says you can’t afford it.

•Expect that if you treat car dealership employees with respect, they will reciprocate. Remember, they want you as a customer for life.

•Expect to pay more for your auto insurance if your credit score is low. That's right, in most states, insurance agencies are allowed to use your credit score to determine insurance premiums. Make sure you consider this when deciding what you can afford.

Financing an Auto Loan After Bankruptcy

Financing a new car after a bankruptcy is actually easier than financing a used car. New cars have incentives and/or rebates which can lower or eliminate the cash down payment needed for buying a new car. You just use the rebate as the down payment. So, when looking for a new car loan after bankruptcy, it's often best to purchase the one with the highest rebate.

Each auto lender creates their own credit guidelines to deal with a bankruptcy. Unfortunately, most lenders don't like us bankrupt folks...some tolerate us...and a select few court us when we ask...but they don't often shout from the rooftops, "WE HELP BANKRUPT PEOPLE!" And, those who do shout are usually the bad ones offering the highest interest rates.

If the deal is structured right, it's possible to finance a new car at a rate as low as 0% with no money down through a mainstream lender—if you work with the right dealership. Car dealers can be as different as a Mac and a PC. And just because one car dealer says, "No," doesn't mean you can't be approved for a carloan after bankruptcy at a decent rate from another dealer.

When to Finance a Car After Bankruptcy

•After you file a Chapter 7 bankruptcy it's not a good idea to try and get a car loan before you're discharged—wait until you receive your discharge letter in the mail from the bankruptcy court...then try to finance a car.

•After you file a Chapter 13 bankruptcy, you need trustee approval to finance another car loan. Make sure the deal makes sense before you approach your trustee. You need to have a good reason for your trustee to approve a new auto loan. For example, if your family situation has changed and you need a bigger vehicle for your growing family, or your car is a hoopty that just won't run anymore.

Where to Finance Your Auto Loan

•The worst place to obtain an auto loan after bankruptcy is usually your local bank. They don't have much incentive to finance you.

•The best place to get a car loan after bankruptcy is usually the car manufacturer. The car manufacturer has more incentive to offer you a good deal than a bank...and always reports to all three national credit reporting agencies.

•Some "subprime" lenders (lenders that charge you higher interest rates than mainstream lenders) could be your only option if you're in a hurry. Normally, I would warn you to stay away from subprime lenders. But if you didn't make your auto payments on time or had a car repossessed or included in your bankruptcy...subprime may be your only choice. However, not all subprime lenders are the same. Some will offer you a decent deal—others will try to take advantage of your situation. So make sure you interview lenders and compare what they offer you. The winner will stick out like a sore thumb.

The line most car dealers love to spin, "...I know this interest rate is high, but come back in 12 months and we'll refinance you..." is a lie from the pits of hell. Want to see them back-peddle? Ask for them to put that in writing.

Your Credit Score and Getting an Auto Loan After Bankruptcy

If your personal credit report shows that you've had a car repossessed, it will hurt you. Even if you voluntarily turned the car back in...it still has the same negative impact to your FICO credit score. Repossession and a voluntary repossession are the same in the eyes of the FICO score formula. So if you've had a car repossessed, know that you may need to reestablish your auto credit with a finance company first.