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Bankruptcy Loans - Leasing Is Possible Even After Bankruptcy
By admin | April 15, 2008
Leasing after a bankruptcy is not as difficult as it is thought to be. For instance, in order to obtain a bankruptcy auto loan, you need not have a stellar credit!
Until about 8 years ago, banks were in search of people with sub-prime credit and those who needed car loans or a bankruptcy auto loan. And, if at all the bankruptcy auto loan was offered, the bank used to charge a hefty interest rate.
The funniest thing about this kind of loan was that the higher the rate, the more interest were the people required to pay out in the first years of the bankruptcy auto loan term!
In other words, after 1 year of paying on this bankruptcy auto loan, it used to become impossible to continue making payments. This was because a small percentage of their payments used to go towards principle and the amount of money they still owed on their vehicle was very high.
Now-a-days, banks as well as manufacturers have come up with a way so that everyone can benefit from leasing.
Accordingly, it is now possible for you to lease a new or a newer vehicle even if you do not qualify for a prime rate and are in need of the bankruptcy auto loan.
Following are certain facts regarding the same:
• A shorter term of about 36 months is generally given to pay on the vehicle.
• One is required to pay only on three years of use. This is because the end value is fixed and is backed out of the loan amount.
• As the interest is based only on three years of usage and not on the entire value of the car, the principle can be paid down faster.
• Even in case the car gets repossessed, the lender remains in a good position with regard to the vehicles loan balance and current value.
Thus, in order to get yourself on the right track immediately after bankruptcy, it is advisable to opt for a bankruptcy auto loan or a lease.
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Tags: bankruptcy loan, leasing
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Topics: Business |
