The down payment needed on a bankruptcy auto loan depends on many factors.

Previous Credit

If you are on this website, you probably have had a bankruptcy. “Previous Credit” means the years leading up to your bankruptcy. Have you had auto loans or mortgages you have paid well? Auto lenders are most concerned with how you have paid installment loans, like auto loans. Credit cards and other revolving accounts are less significant in determining your auto loan tier.

Income

Are you a W-2 Employee, or 1099/Self Employed? The answer matters…a lot! Most of the $0 down bankruptcy auto loan programs are tied to the applicant having W-2 income. Additionally, your Debt-to-Income ratio will play a major factor.

Debt

Your Debt-to-Income (DTI) ratio can make or break your auto loan. If you cannot afford the new auto loan, why would a bank give you a loan? Add up all of your monthly income, before taxes, then divide that number by 2. Next, subtract all of your current monthly debt (rent, loans, child support, etc…not utilities/bills). The difference is what most lenders will determine you have left over for your new auto loan payment.

Each lender uses a combination of your Previous Credit, your Income, and your Debt to determine if you will qualify at all, and at what tier in their system. Based on how you score to the bankruptcy auto lender, the lender will usually determine what your minimum down payment and interest rate will be.

At AutoLoanBankruptcy.com, we have bankruptcy auto loan programs that even allow people to get an auto loan with $0 down. Not everyone will qualify, but many do.