How to Buy a Car Zero Down With Bankruptcy & Repo on a Credit Report


Be realistic about the loan amount if you absolutely are required to put down any money. The bank or dealership giving the loan does not care why you had to declare bankruptcy. They will only be concerned about the repo within your credit history. This will cause the dealership or bank to be cautious about extending you a large sum of money. If you must put down a deposit, set an amount that you know will get you a decent car.


Show improvement in your credit history. Many times banks and dealerships will only look at the overall credit score. Explain your situation. Show them that your credit score has been constantly improving since you've been paying your creditors on time.


Find a dealership that specializes in "bad credit" or "no credit" car loans. Look for car lots that have "on lot" financing or have a 'buy here, pay here" option. These lots have no problem extending you a car loan for two reasons. Firstly, they will charge you higher interest rates, which in the long run makes more money for them. Secondly, if you do not make your payments, they will just come take the car back and sell it to someone else. There really is no risk for the dealerships unless you totally wreck the car.


Determine the amount you will need for a down payment, if any. Remember, your credit history is not trustworthy, so you may need to put money down, even if it's only to offset the high interest rates. If buying a new car, try to put down 20 percent. Only 10 percent is needed for used car purchases, so if you are buying a used car for $5000, a $500 deposit will suffice.

Tips and Warnings

  • After having the car for a year, you could consider refinancing it for lower interest rates. This option may significantly reduce your monthly payments. However, this will only work if you have made your payments on time.
  • Do not purchase a used car without asking for a Carfax report.
  • You have had your car since you were a freshman in college. It's been with you through the good times and the bad times. There is nothing you love more than that car. Unfortunately, the car needs a new transmission, tires and a radiator. It is time for a new car. For those with excellent credit, buying a new car is easy. For the rest of you, buying a new car is a hassle, especially if you have ever declared bankruptcy. If that is the case, you will not be able to purchase a car without putting money down. But there are still several options.