Getting finance post bankruptcy

Q.

My son is wanting to get a new car. He was a bankrupt and is out of this in September 2001. I believe this remains on his file for some years after. He is working full time and lives at home. How will he get finance for the car as most places will not look at him?

The easiest way to handle it may be to use a finance person at the car dealership where he intends to buy the car. Of course, this assumes he is buying from a large dealership. Alternatively, you may need to go guarantor in which case it's best to talk to your bank.

Infochoice has a list of non-conforming lenders that might also be able to help.

But warning, carefully weigh up the pros and cons of using a con-forming lender as they usually charge a higher rate of interest due to the perceived higher risk in giving the loan. This could amount to thousands of dollars over the life of a loan. Lenders usually also impose stricter repayment conditions.

However, one or two years of on-time loan repayments under these arrangements helps demonstrate creditworthiness and establish a good credit record. Borrowers previously failing to obtain funds using traditional forms of finance may use the alternative loan market to regain access to mainstream sources of credit.