It is true that getting a car after repossession is difficult. But, if you can find a lender who is willing to consider your financial circumstances that led to the unfortunate event with an open mind, getting a car after repo is possible. A genuinely interested lender will check with you the time the repossession happened and the circumstances that led to it. For instance, was it due to a loss of job or unexpected medical expenses?
Repossession refers to retrieval of the vehicle in the instance you default on the repayment of the loan. The vehicle is then auctioned to recover the dues from you. The lender has the right to repossess the vehicle as soon as the first repayment is missed. However, generally most lenders give you a grace period to arrange funds. Getting a car back after repossession is possible if you can immediately catch up with the payments before the vehicle is auctioned.
If the vehicle is already sold out, check the price it was sold at. This will help you to know whether there are any outstanding dues that you need to clear off. Vehicles sold at a lower price often leave an outstanding amount showing on the report, which may hamper your future prospects of securing a loan. Your credit takes a beating after a repossession, which shows on the credit report for as long as seven years. So, getting a car after a repo requires some time, not necessarily seven years, though. You can wait out for some time before considering purchase of another car.
If you need to buy a car immediately, you can get a cosigner to sign the loan papers with you. It then becomes the responsibility of the cosigner, considered more credit-worthy than you, to repay the loan. auto refinancing bad credit is another option you can explore. See if you can arrange for funds by borrowing from friends or family to make a large down payment. This will not only reduce the loan amount but also help you qualify for lower interest rates.
Getting a car after repossession requires fiscal discipline on your part. So, make sure that you follow the schedule for any debts that you have and pay off utility bills on time. You may even opt for a secure credit card where you need to deposit security money equal to the credit limit of the car.