How do I get a car loan after a repossession?

I had my car repossessed about three years ago. Since then, I've been using public transit. I've saved up a good amount of money for a down payment. Can I get a car loan now?

Answer
Getting a car loan if you’ve had a repossession in the past seven years will be pretty tough, but there are certainly ways to increase your chances of getting approval. Actions to take include:
  • Check your credit report: make sure that everything is paid on time and that you don’t have any other derogatory marks
  • Build your credit as much as possible before applying
  • Don’t buy a more expensive car than you can afford
  • Get a cosigner or co-borrower for the loan (usually a parent or spouse)
  • Have a good down payment ready, ideally around 20%
You may also want to choose a lender with whom you can meet in-person to discuss the details of your repossession. Building rapport with your lender can only help your chances of getting a loan!
If you’re looking to save money for your new car, make sure to use Jerry when it’s time to purchase car insurance. Jerry can help you compare quotes from the nation’s top providers to find the best rates for your coverage needs.
Eric Schad
Answered on Oct 28, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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