Can You Buy a Toyota After Filing for Bankruptcy?

Buy Toyota Kenner

Buying a new car can be intimidating if you have bad credit or, even worse, if you have filed for bankruptcy. In the past, you may not have been able to buy a car in this situation. Today, however, it is actually possible to buy a Toyota whether you have filed for bankruptcy. You may, however, have to put in a bit more effort.

Paying in Cash

If you are one of the rare people who has filed for bankruptcy and later gets enough money to pay for a vehicle outright, you will definitely be able to get a Toyota. If you can pay for the vehicle in full right away, you shouldn’t have a single problem buying it. Few Kenner drivers are in this situation, though, so it helps to know that you can even find financing after bankruptcy.

Expect a Slightly Higher Rate

While you should be able to buy a Toyota after filing for bankruptcy with financing, you should expect the interest rate to be a bit higher. Lenders will always give slightly higher interest rates to those with poor credit or who have filed for bankruptcy, so you should be prepared for that fact.

Even so, don’t let lenders take advantage of you. Some will offer extremely high interest rates that are unnecessary. They know that those who have filed for bankruptcy don’t expect to be able to get financing and are more likely to accept the first offer they get for an auto loan. Your rate will be higher than someone with good credit, but not obscenely high.

Shop Around for Rates

Just like anyone else who is buying a Toyota, you should shop around and compare interest rates from lenders before choosing your auto loan. You may be surprised at the numbers you find, particularly if you have a good history of making car payments on time or your bankruptcy was due to medical bills or something else out of your control.

For help buying a Toyota regardless of your financial history, visit Ray Brandt Toyota in Kenner, Louisiana.