If you have recently had your car repossessed and need to take out a new auto loan, there are a few steps you will want to take to ensure that your car loan after repossession gets approved. If you want to see if you qualify now, you can apply here for a post repossession auto loan.
Pay Off Any Remaining Balance
When a car is repossessed and sold at auction, the borrower is then held responsible for any remaining balance, otherwise known as car loan deficiency. Having the extra funds on hand to pay off what can be as much as several thousand dollars is unlikely, but if you are hoping to finance a new car soon, you will need to figure out a way. Otherwise, your credit will be badly injured and most lenders will not be willing to work with you.
Hold Out as Long as You Can
In most cases, with the help of family, friends, co-workers and public transportation, you will be able to maintain your life, though with some inconvenience without owning a car. The longer you can prolong this period, the more time you will have to rebuild and repair your damaged credit. Repairing poor credit takes time and the use of good practices like paying bills on time and reducing your debts. And the more damage control you can do, the better your chances will be of securing a future loan.
If You Can’t Wait, Try Buy Here Pay Here Lenders
For those who need a new car immediately, you will want to consider applying with a subprime lender, rather than banks or more traditional lending institutions. For those who need an auto loan with bad credit with a past repossession or bankruptcy, Buy Here Pay Here dealers may be able to offer you the easy financing and rates you need. At MyCarLender.com, we can help you get pre-approved for financing from one of these dealers.