February 27, 2017

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Auto Finance After Repossession

Can you really finance a car after a repossession? Yes, of course you can. It’s important that you fully understand the process going into it.

First of all, there are countless sources that will finance a car loan for you. In general, they are not unsympathetic to your situation. They will generally evaluate each situation individually.

There are countless circumstances that may have brought about the repossession and they will want to know exactly what happened. Was there an illness? Layoff? Family tragedy? Or simply overextended? Any of these, and more, could be contributing factors. They will want to know what happened. Your honesty will play a big part in the type of loan approval you get.

Going into this, understand that their requirements for granting you a loan may be more stringent than you have faced in the past. You should be prepared for the following:

  • Be prepared to pay money down
  • Expect to provide documentation (proof of your income, residence, etc.)
  • Don’t expect a bargain-basement interest rate on your loan

In exchange for their granting you another loan, you have to expect to meet these requirements that may be part of your loan approval.

Following a repossession, it is a typical outcome for the bank or lender to file a claim against you for collecting any deficiency on the loan. If that has happened, and you subsequently filed for bankruptcy, or if your repossession occurred while you were in the process of bankruptcy, the situation is a little different.

In that case, you can probably qualify for some reasonably attractive financing. Since each circumstance is different, contact us and we’ll give you straight answers on what is and isn’t available for you.