How to obtain a car loan with a prior repossession
Having a previous automobile repossession makes you an undesirable candidate for a new auto loan with a bank or a credit union. That does not mean however that there are no options available if you are looking to finance a new purchase. There are many dealers and private lenders who specialize in working with customers whose credit is damaged due to a prior repossession. The key is to find one place from where to connect repossession customers with those willing to offer them loans.
Some dealers offer "buy here pay here" options where they can provide financing options to customers who have had a prior repossession. This is achieved by providing a used vehicle as well financing for the vehicle based on each individual’s circumstances. These dealers also provide "lease here pay here" options. This means that the dealer provides the used vehicle of choice with leasing options tailored to a customer with a repossession. With both "buy here" and "lease here" options, the vehicle will have a Global Positioning System (GPS) unit installed. This allows the dealer to keep tabs on the vehicle as well as recover it should payment lapse or communication between customer and dealer
In general, there are also higher monthly payments for customers who have had repossession. This is due to the higher risk for the dealer in lending to a customer who has had financial complications in the past. Any customer who has repossession in the past must understand that due to their past issues with payment they will be paying higher rates than the traditional customer who has not had a repossession. Understanding this, customers who would like to be matched with a dealer or lender may be able to be given a second chance at owning a car.
Finding a website that allows you to approach all of these lenders and dealers from one place simplifies the process. You can apply online and get contacted by a lender to discuss the specifics of your credit. Sometimes you will not have the option to purchase a new vehicle and may have to choose from the vehicles offered to you. Having a previous repossession does not mean that you can never own a vehicle again. It just means that you will have to work a little harder to prove that you are a desirable and trustworthy loan candidate.Source: www.drivercredit.com