GITNUX MARKETDATA REPORT 2024

Statistics About The Average Interest Rate Car Loan After Chapter 7

The average interest rate on a car loan after filing for Chapter 7 bankruptcy is typically higher than the average rate for individuals with good credit.

Last Updated: June 20, 2024

Written & Summarized by: Jannik Lindner

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In this post, we will explore a plethora of statistics regarding car loans after filing for Chapter 7 bankruptcy. From the impact of the pandemic on interest rates to the percentage of borrowers facing high APRs, we will delve into the various aspects that shape the car loan landscape for individuals recovering from bankruptcy. Understanding these statistics is crucial for those navigating the post-bankruptcy financial terrain and seeking to make informed decisions about auto financing.

Statistic 1

"Pandemic-related car loan rates after bankruptcy dropped slightly to 16%."

Statistic 2

"Roughly 22% of people can expect their interest rate to be above 15% after declaring bankruptcy."

Statistic 3

"Approximately 60% of those who get a car loan after bankruptcy pay an interest rate above 10%."

Statistic 4

"Borrowers who wait two years after bankruptcy can have their interest rates drop by around 10%."

Statistic 5

"More than half the people who declare chapter 7 bankruptcy can get a car loan within a year of filing."

Statistic 6

"Subprime auto loans make up about 20% of total auto loans, which includes loans made after bankruptcy."

Statistic 7

"Lenders report that about 15% of car loans after bankruptcy are charged off as bad debt within the first year."

Statistic 8

"Nearly 50% of people with a prior bankruptcy have a VantageScore credit score below 600 when applying for a car loan."

Statistic 9

"Borrowers with lower credit scores – from 500 to 600 - could only receive auto loans with annual percentage rates (APRs) on used cars at an average of 17.08%."

Statistic 10

"Approximately 60% of prime borrowers can expect to see their interest rate double after declaring bankruptcy."

Statistic 11

"Nearly 30% of post-bankruptcy borrowers assume a joint auto loan."

Statistic 12

"Almost 40% of people after a bankruptcy pay an interest rate around 20% for their car loan."

Statistic 13

"People with bankruptcy who wait a year before getting a car loan can reduce their interest rate by approximately 10%."

Statistic 14

"Approximately 33% of people after bankruptcy have their car loans extend beyond 72 months."

The statistics presented highlight the challenges and opportunities for individuals seeking car loans after declaring bankruptcy. The data reveals a fluctuating landscape of interest rates, with a significant proportion facing high rates above 15% or even 20%. However, there are indications of potential improvement for borrowers, such as the decrease in rates after waiting two years post-bankruptcy. The prevalence of subprime auto loans underscores the importance of understanding credit scores and loan terms before entering into agreements. Despite the obstacles, there are strategies, such as waiting a year or opting for joint loans, that can help individuals secure more favorable terms.

Jannik Lindner

Jannik is the Co-Founder of Gitnux and has been working in the digital space since 2016. He is specialized in content and tech.

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