How High are Interest Rates for Car Loans after Bankruptcy?
February 4, 2010 4:42 am AutosMany individuals who have suffered a bankruptcy know that an auto loan is a great way to start rebuilding their credit. Unfortunately, rumors of exorbitant interest rates dissuade many of them from venturing back into the car market.
Unfortunately, such rumors can be substantiated all too often. It is not unheard of for car loans after bankruptcy to carry interest rates north of 20% — ouch! There is good news, however: you can often trade in this first vehicle purchase after 1-2 years and buy another at a much lower interest rate. After another 1-2 years, you may be able to refinance at an even lower rate, and within five years post-bankruptcy it’s possible to find yourself paying a fairly typical interest rate on your car loan.
