What do you do if you have just emerged from a bankruptcy discharge and you need a car? You can't just walk into the nearest dealership and drive off with your vehicle of choice. The effect of bankruptcy on your credit means that you have a harder task of buying a car than the average person. Here are a few tips and tricks you can use to make the process smoother:

Look For Alternative Lenders

Car dealerships can sell to anybody who can pay for their products; it's the lenders you have to worry about. Since mainstream lenders (e.g. banks) may give you a hard time, look for alternative lenders such as credit unions, online (such as peer-to-peer) lenders, and dealers.

These alternative lenders have various reasons for lending to those who would not receive favorable consideration for banks. For example, credit unions tend to be community-based and are interested in uplifting their community's economy. Make sure that you shop around; do your research and ensure that you are getting a good and legal deal.

Go Basic

Another thing you should know is that the bankruptcy trustee isn't likely to sign off on a luxury car. Remember, you should only buy a car at this point if you need one. This is usually the case if you need a vehicle for your work or business, and this is something that can easily be met with a standard car. In most cases, you will have to work with a lower maximum (that the trustee allows you to spend on a car) than if you were looking for a car without the history of bankruptcy.

Wait Some Time, If that's Possible

The longer you wait after bankruptcy before buying a car, the easier the process will be and the better your rates will be. Therefore, if you can afford to wait, then give your credit some time to heal. During this time, do your best to put your financial house in order, which means meeting your financial obligations under the guidance of a bankruptcy trustee and an attorney, like Hoffman, Hamer & Associates, PLLC.

Make a Down Payment

Finally, if you can, you should live frugally for a time so that you can save some cash to use as a down payment. The bigger your down payment is, the less risky you are to the financier because he or she doesn't have to lend you the whole amount for the car. This means that making a down payment increases your chances of getting a favorable rate.

Don't forget to shop around before settling on a car and a loan. Just because you've filed for bankruptcy doesn't mean that you have to accept the first offers you receive. Commit to your payments and you will be building your credit in the process.