Can I get a car loan after a repossession?

January 31, 2023

Car loans after a repossession

Buying a car after repossession is possible, but there are a few things to know about the process. For starters, there’s no need to be nervous. We specialize in helping people find auto financing regardless of what has happened in their past and we can make sure that lenders see you for who you are—instead of just a number on a credit report.

Remember that your ability to get a loan is based on your credit profile and an event like a repossession will lower your score significantly–sometimes by as much as 100-150 points. Plus, in most cases, a repossession will stay on your credit profile for 7 years after the date you missed your first payment. So, if you can’t afford to skip the loan process and buy a car outright, chances are you’ll need to get a car loan before your finances have fully recovered from the impact

How long after a repossession can I get a car loan?

There is no rule that states how long you must wait, but many traditional lenders or banks will not be willing to give you a car loan until at least 12 months after your repossession—especially if you are still paying off the debt.

That is not the case with Dick Says Yes. We work with challenged credit every day—from repossessions and bankruptcy to divorce, foreclosure, bad credit, no credit, and first-time buyers. When you need a car after a repossession, we will walk you through the process of securing your loan with complete transparency. So, you’ll know exactly what your interest rates and payments will be before you come to the dealership.

How should I prepare for an auto loan after repossession?

The best way to recover from a repossession (and prepare yourself for a new car loan) is to stay current on bills (like utilities and insurance) and catch up on missed payments for other debts (like credit cards). It can take time to rebuild your credit score, but even the smallest efforts can have a profound impact.

There are, of course, a few ways to streamline the process, like:

Get a secured credit card. Secured cards require you to put down a deposit, which acts as your balance. It’s low risk to lenders and allows you to build a positive history.
Become an authorized user. Becoming an authorized user on a trusted loved one’s card could help—especially if that loved one has a long record of on-time payments.
Keep your credit utilization down. Your credit utilization number is the sum of your credit card balance divided by your credit card limit. Experts suggest keeping your credit utilization below 30%.

Whatever your circumstances, when you need a car, just fill out our online pre-approval form and one of our finance specialists will follow up with a phone interview and get you behind the wheel—sometimes in as little as 24 hours. This service is not only free and available to anyone—whether their credit score is under 500 or almost 800—it is what we love to do.

Our family-owned auto group is all about connecting people with cars and helping you rebuild your credit for a brighter future through out the Portland and Vancouver area. Not only that, we guarantee every vehicle we sell with our Peace of Mind Pre-owned Promise and a 5-day Exchange Policy. So, you can rest assured that you are getting the highest quality vehicle for the best possible price.