What if you have “less” than a sterling credit rating? You can still get financing. But you can expect to jump through some hoops to get anything approaching decent terms.

From a lender’s perspective, the self-employed seem to fall into two distinct classes. For the person with a sterling credit rating, there aren’t any obstacles. Unless you’ve got a lot of debt. In this case, the lenders will want you to prove your income. This is so you can demonstrate your ability to repay the car loan.

With less than sterling credit, it’s a given that the first priority of the lender is solid proof of your income.

The lenders will want your last 2 years of tax returns. And this sometimes presents a few problems. One of the reasons that people opt for self-employment is so they can take advantage of tax deductions that just aren’t available to employed people.

And that’s where the rub comes in. Whenever you load up your deductions to the point where you’re only claiming a small income, you’re going to experience some real difficulty. The good news is that there are a number of lenders that will take that into account. They will look closely at your deductions and will then count a few of them as income. Not many – but there are a few.

Don’t have 2 years of tax returns? There are a few lenders that will accept your bank statements. Be prepared, though. They will want full statements for the last 6 months. And they will charge you for it. From their perspective, you just fell into a higher risk category.

Now, if you don’t have either of these – your choices will get real limited real fast. And the reason is pretty simple. No tax returns + no bank statements = no business. Their rule, not ours. In their eyes, you’re nothing more than a tax-dodger.

Now that we’ve shared this wonderful news with you – let’s move on. There are a few more items that you’re going to have to provide in addition to proof of your income:

• Proof of your residence (a home phone bill or utility bill – no past dues or cutoff notices)

• A copy of your most recent phone bill (home phones preferred – they want to know they can call you)

• A list of personal references (friends, relatives – they’ll want 10 of them) with full addresses and phones

• Complete landlord information or a copy of your most recent mortgage statement

Knowing up-front what you’re going to need will get you prepared. Once you’ve satisfied all the documentation requirements, the finance process actually will go quite smoothly.

As one last requirement, the lender will call you, personally, for an interview.

This is not the time for you to get an attitude. It will cost you your loan. Simple courtesy goes a long way in establishing a good rapport with your new financial partner. They will document everything – including their impression of you during the interview. This is definitely the time for you to make a good impression.

First of all, there are countless sources that will finance a car loan for you. In general, they are not unsympathetic to your situation. They will generally evaluate each situation individually.

There are countless circumstances that may have brought about the repossession and they will want to know exactly what happened. Was there an illness? Layoff? Family tragedy? Or simply overextended? Any of these, and more, could be contributing factors. They will want to know what happened. Your honesty will play a big part in the type of loan approval you get.

Going into this, understand that their requirements for granting you a loan may be more stringent than you have faced in the past. You should be prepared for the following:

• Be prepared to pay money down
• Expect to provide documentation (proof of your income, residence, etc.)
• Don’t expect a bargain-basement interest rate on your loan

In exchange for their granting you another loan, you have to expect to meet these requirements that may be part of your loan approval.

Following a repossession, it is a typical outcome for the bank or lender to file a claim against you for collecting any deficiency on the loan. If that has happened, and you subsequently filed for bankruptcy, or if your repossession occurred while you were in the process of bankruptcy, the situation is a little different.

In that case, you can probably qualify for some reasonably attractive financing. Since each circumstance is different, contact us and we’ll give you straight answers on what is and isn’t available for you.

Chances are, if you’ve talked to a bank or your local car dealer, you may have gotten some bad news. They’re more than a little reluctant to finance a vehicle when you’ve had a foreclosure. After all, they say, you can’t pay for your house so we sure don’t think you’ll pay for your car.

In the difficult arena known as the mortgage mess we have today, there is one area that we have some good news for you. We have access to lenders that will approve your car loan.

There are a number of these sources that really don’t care about your foreclosure. They only care about how you’re going to pay your car loan.

And the news doesn’t end there – it gets a little better. There are some sources that won’t charge you an interest rate that makes you sick.

So if you’re in the unfortunate situation of having had a foreclosure, we want you to know that yes, we can help.

Although each individual circumstance will differ, you need to know that it is not only possible but fairly easy to get approved for auto financing after a bankruptcy.

A couple of the more common mistakes we see made by people in this situation include:

• Purchasing from a Buy-Here Pay-Here dealer

• Re-affirming an existing auto loan when they are hopelessly upside-down

The Buy-Here Pay-Here Trap

Whenever people rush into this type of financing, they are usually setting themselves up for a bit of a shock. Your state may regulate the interest rates on the loan, but you can bet that the price of the vehicle is not subject to any sort of regulation. That dealer who told you that your contract met the state guidelines may have been telling you the truth.

What he didn’t tell you was that even after making a huge down payment, you are not going to be able to trade that car in. Not until you’ve made the last payment. And the chances are, the car won’t last that long. So if you’re caught in this trap, realize the best thing you can do is get that loan reduced as fast as possible.

You Re-Affirmed

Thinking that you wouldn’t qualify for a new loan, you followed the logic that most people use. You re-affirmed. And now, you owe $20,000 on a vehicle that’s worth $6,000. So just what do you think it will take to trade that vehicle for a new one? If you answered $14,000, you’re close.

Does this mean you’re stuck? Not at all. Remember, each individual circumstance is different. It’s definitely worth your time to check it out. Even though you may find yourself in one of these situations, it may be more than possible to get out of it.

And if you’re in a car loan and your bankruptcy has not discharged, get in touch with us now.

The answer is Yes. For clarification, it’s necessary to understand the major types of bankruptcy that we deal with.

First, there’s the Chapter 7 bankruptcy. This is the program where you essentially include all debts in your bankruptcy filing and upon discharge, you are no longer obligated to repay those debts. There are occasions when a debtor may perform what is called a “reaffirmation of debt,” however, for our purposes that is not usually a consideration.

In a Chapter 7 bankruptcy it is entirely possible to arrange auto financing prior to the discharge. There is a widespread misconception that the bankruptcy must first be discharged. Typically, most auto dealers and banks will inform you that you must have a discharge in order to qualify for auto financing.

The reasons behind their statement are usually due to the fact that they are unaware of the financing programs available or they were unable to qualify for these programs. In the case of the banks telling you to first get a discharge, they usually are using this as a delaying tactic. They’re really not interested.

Over the years, we have built several outstanding relationships with lenders that specialize in making this type of loan. For the most part, these lenders tend to be “exclusive” in that only select dealers are allowed to offer these programs within a given marketplace.

The other type of bankruptcy most commonly encountered is Chapter 13. This is a debt-repayment plan that is typically set up for a 3 to 5 year period. Obtaining auto financing while in this program is actually quite an easy process. One of the most common obstacles is a lack of thorough understanding of the process and procedures that must be followed.

Both Chapter 7 and Chapter 13 auto loans are closely regulated and monitored by the bankruptcy courts. These areas require a thorough knowledge and understanding of all the rules, regulations and processes that must be followed. Most auto dealers are severely lacking in this understanding.

We specialize in these loans. Through the years we have built up a level of trust and credibility with our lenders, the courts and the trustee’s office. Our experience and expertise give us the ability to accomplish what other dealers cannot.

FreshStartIndy.com is odds-on to become a firm favorite with consumers by revealing the good, the bad and the ugly of auto finance

The auto finance industry is frequently highly secretive and rife with deception. While just barely avoiding crossing the legal line, the industry often exists upon those who promise the moon and then fail to deliver.

While only recently launched, FreshStartIndy.com is already making waves in auto finance circles with its no-nonsense approach to what really goes on behind the scenes in this multi-billion dollar industry. The company’s mission is to provide consumers with verifiable facts and expert help and advice that enables them to make their best decision about which auto finance solutions are best suited to their particular situation.

Out of frustration over the lack of reliable information available directly to consumers, this site was launched to provide up-to-date information and assistance for all who have a need for auto financing.

The marketplace has undergone some recent and unprecedented changes. While there are countless reputable dealerships and financial sources available today, finding this information in a quick and reasonable fashion has become a tedious and tiresome undertaking.

Our intent is to provide this information and to feature solutions that are reliable and trustworthy.

FreshStartIndy.com is ideally positioned to become a consumer favorite for straight talk and an unbiased approach to this frequently misunderstood field.

There are excellent financial solutions available today to address virtually every situation.

Please contact us if you have any questions or comments.