Buying a Car after Repossession: Everything you Need to Know

Buying a Car after Repossession: Everything you Need to Know

Posted on September 19, 2022

If you need to purchase a vehicle but have a recent repossession on your credit report, you have come to the perfect spot. Our Port Colburn auto loans team will discuss how to improve your chances of buying a car after repossession, but you must remain attentive and maintain an open mind.

When did the Property repossession occur?

If you had a vehicle repossessed within the past month, your prospects of obtaining a car loan are nearly non-existent.

It takes a few weeks for the repossessed vehicle to go through the auction procedure and for your existing lender to apply the proceeds to your outstanding loan balance.

After this occurs, negative remarks will be posted to your credit record.

Once the repossession appears on your credit record, you should negotiate a repayment plan with the creditor.

How to remove repossession from a credit. Source: Lexington Law Firm

With the used automobile market at an all-time high, you may be able to break even or even profit, but the negative information will still appear on your credit report.

Developing a narrative of why you had the vehicle repo'd

People who want to give you money may question why you didn't maintain your promise to the previous lender, whether Covid caused you to lose money or end a relationship; having a response prepared demonstrates that you are aware of the issue and are willing to accept full responsibility for it.

This does not ensure that the lenders will grant you the loan, but being prepared will alleviate your worries.

Organize your finances (no matter how much you don’t want to do it)

Now is a wonderful time to organize your accounts so you can maximize your hard-earned cash.

If you do not have a budget, you will not know whether your income is sufficient to pay off your debts.

The 50/30/20 budget rule. Source: https://mint.intuit.com/blog/saving/how-to-budget/

Even if the majority of us did not learn about personal money or budgeting in school, it is something that can be learned by everyone.

Once you get started, it's fairly simple. After establishing a budget, any additional funds should be applied to debt reduction.

When you reduce your level of debt, you benefit in two equally important ways

Interest rates are directly proportional to the total amount of debt owed. In other words, the less debt you have, the less interest you will pay to service it.

What good credit gives you with car loans

Your credit score will increase if you use a smaller percentage of your available credit. When your credit score improves, it becomes less expensive to pay off any current or future loans.

Where can an individual with a repossession on their credit report obtain an auto loan?

The majority of websites cannot assist you in obtaining a car loan because they do not have the same long-term ties with lenders as your local car dealership.

If you engage with a local dealership, they will be able to approve you regardless of how difficult or impossible it may appear.

You must immediately visit your local neighbourhood dealership to explore your vehicle financing choices.

We’d love to help you buy a car after repossession. Simply fill in the form below and we’ll get back to you ASAP or see our selection of used cars at our Burlington dealership. 

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