by kennethfsk

Created on: August 05, 2008   Last Updated: April 26, 2009

Buying a car after a bankruptcy can be very tricky, but it can be done. One of the biggest reasons it can be done now is that the car market is hurting bad. With the market, being what it is means that the dealers and the lenders have to lower their buying scores to attract more people into a purchase. What do I mean by that, well its simple economics actually in order for the automotive industry to survive they have to sell vehicles right. Well in order to sell cars you need to lend money, to lend money you need people willing to borrow it.

With our economy in a slump so to speak due to high gas prices, and other issues many people are holding on to what they have, and being very frugal to say the least. The average person is not out buying cars because they want to anymore it is more based on a need to right now. This kind of public thinking real brings sales to a grinding Holt. The only way to solve this problem is to open new resources. The manufactures and lenders have to allow for a wider range of customers to bring in the business they so frantically need.

So how do they do that, well they lower the bar so to speak. At one time you had to have a least a 700 credit score to buy a new or used car, and get financing. Then the score drop to about 640 now the score isn't as big of an aspect any more. Now don't get me wrong they still look at that, but if you had a bankruptcy recently they may forgive it based on how you performed prior to the bankruptcy. Kind of like the old saying, bad things can happen to good people. If you were once a good credit person, and ran into trying times the lenders may over look your present rating, and allow you to brow money again.

Now don't get all excited here, because there is a consequence to pay, and it's called high interest rate. These rates vary from state to state, where I live the maximum legally allowed is 24%. With this kind of rate, your payment will be approximately double, what it would have been before the bankruptcy. The best lenders to use are the manufactures lenders like NMAC or FMC, or GMAC financing. They tend to more interest in you buying the vehicle then ripping your head off with a high rate. Most of these lenders have tier programs, so if you hear them advertising a 1.9% rate with approved credit they will usually have a tier program for those with less than the minimum required score.

Take for instant Nissan Motor acceptance corp. or NMAC, as they are known. When they offer a low rate to good credit

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