A friend of mine is in the process declaring bankruptcy, and will probably file sometime in the next few months. The car he’s driving now is leased, which apparently wouldn’t be affected by the bankruptcy, and the lease has a little over a year left on it. I’ve been trying to get him to see all the problems he’ll have after filing, and one thing I’ve brought up is that he won’t be able to get a replacement vehicle once that lease is up, and he’s probably going to have to buy whatever he can pay cash for. He’s under the impression that he’s got a good chance of still being able to buy the car when the lease is up, and that the dealer is likely to give him financing because among other things they’ll see he was always on time with his lease payments. He also brings up a point (which I agree with), that it is a good deal for the dealer when the customer buys the car after a lease. Is his idea at all realistic? Would he be able to get financing to buy his car, less than a year after filing bankruptcy?
Speaking from experience, no.
I could not rent a car for many years after.
I could not get a credit card, even a gas card or department store credit account for a year.
A hit-and-run driver totaled my parked car and I had to get my mother to co-sign the loan.
I appreciate the response, and especially the other examples of what he’d be looking at if he does go ahead and file. To be honest, from what he’s told me about his financial situation I could see it going either way, but I’ve really been trying to get him to look at other alternatives. I think he’s been getting some bad advice from co-workers and acquaintances who have filed, and especially the lawyer he talked to. He tends to hear the positives or the things which will help him, and skip over the negatives, especially the negatives that aren’t immediately apparent or obvious.
Everyone is different and in the current economic situation, who knows what can happen…
BUT I have a friend who went bankrupt a few years ago and the very next year bought a new car and financed it. You see, once you go bankrupt you CANNOT go bankrupt again anytime soon. So… you wind up getting a a LOT of offers to finance things. At least she did…
What she had trouble with was renting an apartment. She moved to a different state and was living with someone else temporarily. Couldn’t find an apartment to rent to save her life; they held the bankruptcy against her. Crazily, she wound up buying an apartment. Yup, making payments…
So don’t rule out being able to buy a car.
Probably but at like 20% interest if a couple of my friends are typical.