Can I Get a Car Financed Under a Part 9 Debt Agreement?
You are not prevented from applying for car finance while under Part 9 in Brisbane. However, it is often more difficult for you to obtain approval from most conventional car dealerships and lenders. The purpose of a Part 9 agreement is to ensure you pay off your existing debts, not necessarily get deeper into debt.
What Is a Part 9 Debt Agreement?
A Part 9 debt agreement is an agreement created as an alternative to having to file for full bankruptcy. You make arrangements with your creditors, with assistance from a debt administrator, to establish a payment agreement based upon an amount you can afford to pay. Typically, any fees and interest are frozen to keep your debts from increasing as you make payments on the principle debt.
Once the majority of your creditors accept your proposed debt agreement, you are bound to it under Part 9 of the Bankruptcy Act. The debt agreement does appear on your credit report to alert other potential lenders of your current financial situation. This can often hinder you from being approved for car finance while under Part 9 in Brisbane.
Why Is It Difficult to Get a Car Financed Under Part 9?
Many lenders do not look favourably on people, who apply for car finance while under Part 9 in Brisbane. This tends to prevent them from approving your loan request since they will have concerns about your ability to pay for the car loan as well as your Part 9 debt agreement. Keep in mind, obtaining car finance under Part 9 in Brisbane is entirely different after you have been discharged and made all of your debt payments. But even then, you may find it difficult to be approved for financing from the bigger banks and conventional car dealerships.
This does not mean you are prevented from obtaining car finance while under Part 9 in Brisbane. You just need to know where to look for assistance and help. There are reputable and reliable car dealers and lenders who specialise in car loans for people with bad credit, even people who are under a Part 9 debt agreement, had it recently discharged, or had to file full bankruptcy.
How to Get Car Finance While Under Part 9 in Brisbane?
You will need to gather documentation to support your ability to repay a car loan and demonstrate to the car dealer and lender you can afford payments, along with your Part 9 debt agreement. Ideally, you should bring along proof of your income, the actual debt agreement showing the amount of your monthly payments, and a detailed list of your other expenses, like your housing payment, utilities, and food.
Next, you want to find a car dealer and lender who is a Credit Reference Provider licensed under the National Credit Act. The reason you want to work with a licensed dealer and lender is because your car payment history may be added to your credit report. As long as you make your payments on time, this can help improve your credit and make it possible to get credit elsewhere after your Part 9 debt agreement has been discharged.
While having a car is often essential to maintain your employment and pay your Part 9 debt agreement, the last thing you want to do is overextend yourself financially. Make sure you determine the exact amount you can easily afford for a car. In addition, remember to include car insurance, loan insurance, and car registration when figuring out how much you can afford for your car payment.
By taking the time to know how much you can afford to pay, it makes it easier for the dealer and lender to assist you. It also makes it easier to get approved for car finance while under Part 9 in Brisbane.
In Cars On Terms, we have helped people from all walk of life, including getting car finance under Part 9 Debt Agreement. Get in touch with us to find out how we can arrange for you!
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