Eligibility Guidelines

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How can I tell if my client is eligible for financing?

Check here for eligibility guidelines.

What are the minimum income requirements?

In most cases, a minimum of $1,700 gross monthly household income from full-time, W2 employment is required. Check here for additional information.

How long does my client need to be employed in order to qualify?

Two consecutive years of employment (though not necessarily with the same employer) are preferred, with no job gaps longer than 30 days

What type of past credit history is required?

Credit histories are reviewed by loan officers, with each application being evaluated on its own merits. A history of at least six on-time vehicle or large (i.e., $5,000 minimum balance) installment payments reporting on the bureau is a big plus, and applicants with strictly derogatory credit histories are unlikely to be approved.

Can my client get multiple vehicle loans?

We will issue one loan per household. However, in the case of joint applicants, we will consider issuing a loan even if there is one existing loan on which the applicants are making payments.

What are the interest rates?

The vast majority of our pre-discharge replacement and redemption loans are issued at 21% interest rate, though they can be lower in some situations. Furthermore, for every three months of on-time payments and continuous insurance coverage, the loan interest rate can drop ½%, up to 2% per year, accelerating payoff and saving your clients hundreds or even thousands of dollars over the life of the loan.*

What type of interest is charged?

Unlike the loans offered by some predatory lenders purporting to “service” your clients, these are simple interest loans, which means that your clients are rewarded—not penalized—for making early, split or extra payments.

What are your typical loan terms, i.e. length in months?

Loans range from 24 to 72 months, depending on the applicant and on the vehicle make, model, year, and mileage.

What is a typical monthly payment amount?

Applicants will usually qualify for a maximum payment between 8-13% of household gross monthly income.

How long does approval take?

We can usually tell your clients within a matter of minutes what type of loan they can qualify for.

Is BKAutos a bank?

BKAutos is not a bank. It is pleased to offer this program in cooperation with Prestige Financial Services, Inc., founded in 1994 and recognized nationwide as a leader in helping consumers with recent bankruptcies and other credit challenges to own reliable vehicles and improve their credit ratings. Prestige’s bond transactions are currently rated AAA by Standard & Poor’s.

How soon can my client buy a replacement vehicle?

Right after filing, in most cases.

Can my client choose from both new and used vehicles?

Yes, both new and used vehicles are available. While many customers purchase new vehicles, the vehicles purchased most frequently are one or two model years old, many of which are certified or still under the original manufacturer’s warranty.

What types of dealerships can my client buy from?

Your clients will enjoy buying from one of nation’s largest networks of reputable, franchised dealerships. Participating dealerships are held to the highest standards of customer service, to ensure a hassle-free experience for your clients.

Can my client leave the surrendered vehicle at the dealership when purchasing the replacement vehicle?

Yes. Be sure that the dealership understands this intention.

What type of down payment is required?

Little or none. The loan-decisioning algorithm encourages low down payments, making it very rare that a down payment amount greater than $500 is required for pre-approval.

Do you offer loans after discharge?

Absolutely, with some of the most competitive interest rates available

Do you offer pre-discharge Chapter 13 loans?

Yes, on a case-by-case basis, if the plan is at least 1/3 complete and with authorization from the trustee (and/or court, where applicable).

Is my client’s vehicle eligible for redemption?

Most private passenger vehicles that are no more than half a dozen years old, and have standard miles for their age (usually under 15,000 miles per year) and clean titles (i.e., no frame or flood damage, odometer discrepancies, etc.) will qualify. Further details are available here.

What type of down payment is required for redemption?

None. Most redemption loans will close with zero cash out of pocket. Usually, the only instance in which this type of payment will be required in when the court orders a redemption value that exceeds the amount allowed for in the Good Faith Estimate.

What if the court orders a redemption value that exceeds the amount allowed for in the Good Faith Estimate?

Your client has the option of submitting payment (via Western Union or certified bank check) for the difference with the loan closing documents.

Do you finance my client’s redemption legal fees?

Your client may choose to borrow an additional amount (up to $600.00) from the proceeds of the loan, directing and authorizing that those funds be disbursed to you for your services rendered work done on their behalf in order to secure the redemption.

How do I get paid for work performed in order to secure a redemption for my client?

If your client chooses to finance your redemption legal fees as part of the new loan, upon closing and funding of the redemption loan, the fee amount indicated in the loan paperwork (which includes the client’s signed authorization for disbursement of loan proceeds) will be disbursed to you by check or ACH, at the mailing address or bank account, respectively, you’ve provided in your BKAutos account.

What becomes of my fees if I work to secure a redemption, but for whatever reason, the redemption loan never closes and funds?

Your client is solely responsible for fees owed you for work performed on his or her behalf.