Have you recently gone through bankruptcy and need to buy an EV? We have put together some key steps you must follow in order to realize your dream of owning an EV. While it may seem like a daunting task, if you stick with it, you will come out ahead.
Rebuilding your credit from scratch
The first thing you will need to do is rebuild your credit; while the bankruptcy removed your legal obligation to repay the debts incurred, the bankruptcy will remain on your credit report for at least seven years.
Prospective lenders will be reluctant to issue any type of new credit until you have demonstrated you have turned a new leaf.
There are financial services like a Capital One secured credit card, which can help you rebuild your credit.
This card works just like a conventional credit card, but you need to deposit funds into a special account; those funds function as your credit limit.
Each month you receive an invoice, and so long as you pay the invoice on time, your credit score will start to improve.
You should incorporate a few different financial products to help boost your credit score even faster; options like the Koho credit builder program may be a good option.
You pay $7 per month, every month, for the next six months. When you make your payments on time, this positive feedback is shared with TransUnion and Equifax, and over the course of a few months, your credit score will improve dramatically.
Creating a budget for your EV
We touched on what steps you need to take in order to build up your credit score. The next thing you should work on is budgeting for the new car.
You probably don’t have the cash on hand to buy the EV by yourself, so you need to secure financing. Prospective lenders will want to know how much cash you have available each month to service your debts.
The bankruptcy wiped out your debts, so you should have a considerable amount of your income available for discretionary spending, like buying a car.
In Canada, the average car payment is $500 per month, not factoring in running costs.
Since you are buying an EV, you don’t have to worry about rising gas prices, but you still need to allocate some cash to cover fuel and maintenance.
How to find the best deal on a new EV
You will not be able to get a good deal online; sure, there are numerous websites all promising the best deal no matter your credit profile.
These websites are not able to give you a fair shake; your best option is working with a local dealership that has helped other drivers with credit challenges in the past.
This dealership will know which lenders are willing to give a bankrupt borrower a second chance; the same dealership will also know how to structure the deal to get you the best value for your money.
You can buy an EV after bankruptcy, but you need to follow all of the suggestions we just provided, so head on over to your local dealership now.
For those of you who know that you have a challenging credit situation, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!