Can I still get a car loan with a repossession?

My car was repossessed when I was younger. I’ve been borrowing a friend's car and doing those rental rides and leasing. But it’s all adding up, and I’d like to have my own car now. My credit’s still pretty bad, though—it’s under 660. Can I get a car loan? What are my options?

Answer
I’m sorry to hear about your repossession, but don’t worry. You can still get a car loan, although it may be difficult, and you will probably have higher interest rates.
When you have low or bad credit you should look into:
  • Subprime lenders (aka bad credit lenders). These lenders will work with people who have a repo on their application if it’s over a year old.
  • Finding a cosigner for a loan from a traditional lender (banks and credit unions).
  • Seeing if your current bank or credit union would offer you favorable rates
  • Building up your credit some more before you take out an auto loan
A repossession can take about seven years to come off of your credit report.
In order to secure a car loan, you’ll also need to have car insurance. With the Jerry app, you can compare competitive quotes from over 50 top insurance providers.
Lauren Smith
Answered on Nov 18, 2021
Lauren has written for World Nomads, the Matador Network, Korvia Consulting, and once upon a time Three Fates Games. She graduated from Columbia College of Chicago with a BFA in Creative Writing. After graduating, she moved overseas and lived in South Korea where she spent her free time traveling and going on road trips with friends. She misses the rest stop potatoes and is trying to figure out how to recreate them at home. She's now based outside of Chicago and when she's not writing she spends her free time reading, playing video games, and exploring whenever she can.
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