rth was much higher than what it actually turned out to be…..and people were told they needed to come up with thousands in order to drop off their vehicles.

As you can imagine, “open-ended leases” such as those (where the vehicle's value would be ascertained when you came to drop off your car at the end of the

I've always chuckled at the reactions I receive when people ask about bankruptcy auto loans, and I suggest they be open to leasing. The looks I get are a cross between “are you kidding?” and “what did you just call me?”

Leasing has undergone a change in popularity since its inception. In the beginning, everyone purchased cars outright…they could do this because a) buying a car on time was not an option, b) because cars cost much less then than they do now.

As options were added to cars, such as color, 2-doors or 4-doors, 5-speed or automatic, am radio or 8-track (oh, am I dating myself here?), vehicle prices begin increasing. Auto loans terms came out at 12 months…moving up quickly to 24 months…36 months…and soon it became apparent that cars were costing more than people could afford.

In stepped the leasing option. It was a neat program at first. You would go in, negotiate a payment with the auto dealer calculating the suggested residual value at the end of the lease. You were soon the proud renter of that vehicle.

The popularity of this method spread like wildfire….until it became snuffed out when the first lessees drove back in years later to drop off their cars. That residual value, the value that their vehicle was supposed to be worth was much higher than what it actually turned out to be…..and people were told they needed to come up with thousands in order to drop off their vehicles.

As you can imagine, “open-ended leases” such as those (where the vehicle's value would be ascertained when you came to drop off your car at the end of the

everyone purchased cars outright…they could do this because a) buying a car on time was not an option, b) because cars cost much less then than they do now.

As options were added to cars, such as color, 2-doors or 4-doors, 5-speed or automatic, am radio or 8-track (oh, am I dating myself here?), vehicle prices begin increasing. Auto loans terms came out at 12 months…moving up quickly to 24 months…36 months…and soon it became apparent that cars were costing more than people could afford.

In stepped the leasing option. It was a neat program at first. You would go in, negotiate a payment with the auto dealer calculating the suggested residual value at the end of the lease. You were soon the proud renter of that vehicle.

The popularity of this method spread like wildfire….until it became snuffed out when the first lessees drove back in years later to drop off their cars. That residual value, the value that their vehicle was supposed to be worth was much higher than what it actually turned out to be…..and people were told they needed to come up with thousands in order to drop off their vehicles.

As you can imagine, “open-ended leases” such as those (where the vehicle's value would be ascertained when you came to drop off your car at the end of the

easing. Auto loans terms came out at 12 months…moving up quickly to 24 months…36 months…and soon it became apparent that cars were costing more than people could afford.

In stepped the leasing option. It was a neat program at first. You would go in, negotiate a payment with the auto dealer calculating the suggested residual value at the end of the lease. You were soon the proud renter of that vehicle.

The popularity of this method spread like wildfire….until it became snuffed out when the first lessees drove back in years later to drop off their cars. That residual value, the value that their vehicle was supposed to be worth was much higher than what it actually turned out to be…..and people were told they needed to come up with thousands in order to drop off their vehicles.

As you can imagine, “open-ended leases” such as those (where the vehicle's value would be ascertained when you came to drop off your car at the end of the

uggested residual value at the end of the lease. You were soon the proud renter of that vehicle.

The popularity of this method spread like wildfire….until it became snuffed out when the first lessees drove back in years later to drop off their cars. That residual value, the value that their vehicle was supposed to be worth was much higher than what it actually turned out to be…..and people were told they needed to come up with thousands in order to drop off their vehicles.

As you can imagine, “open-ended leases” such as those (where the vehicle's value would be ascertained when you came to drop off your car at the end of the

rth was much higher than what it actually turned out to be…..and people were told they needed to come up with thousands in order to drop off their vehicles.

As you can imagine, “open-ended leases” such as those (where the vehicle's value would be ascertained when you came to drop off your car at the end of the lease, rather than set in stone as they are now in “closed-end leases”) became about as popular as a electric shock therapy in the rain.

So, purchasing vehicles was back in vogue. And, just like in high school economics, the prices of the cars increased faster than the incomes of those who wanted them….and soon terms increased to 48 months.

Today, a 60 month loan is commonplace, with people signing up for 72 and 84 month loans without batting an eye. So, not surprisingly, leasing was given a second look, has been restructured, and is now an option for people to get the best of both worlds.

People can get a brand new (or slightly used…yes, they even lease used cars now too!) vehicle for a reasonable payment.

So, how does this relate to me, you ask? I thought you had to have stellar credit in order to lease.

Enter the world of the bankruptcy auto loan!

This was the case until about 8 years ago. Banks were finding that there were many people with sub-prime credit that needed car loans or a bankruptcy auto loan.

For years, if you had bad credit, or required a bankruptcy auto loan, you were charged a hefty interest rate if you wanted their loan, take it or leave it.

Well, funny thing about in