How do you get a car loan with a repossession?

My car was repossessed a few years ago. I’ve been working on slowly paying off my debt and repairing my credit, but I need my own car to get around. Is it even possible for me to get a car loan with a repossession on my record?

Answer
It is possible to get a car loan after repossession. There are a couple of different lenders that offer these loans—usually subprime or bad credit lenders. They’ll work with people who have credit scores below 660 or whose repossession is over a year old.
Another option is BHPH, or Buy Here Pay Here dealerships. These dealerships are a one-stop-shop for selling and financing. They don’t always check your credit, so repossessions won’t usually matter to them.
While BHPH dealerships are useful in a pinch, they can be dangerous to your finances. They get to control everything, including the limits of your loan. This could lead to you paying much more than your car is worth and getting into trouble fast.
If your credit is 660 or higher, you can try your local credit union or bank to see if you can get a traditional loan. All of that hard work might pay off and get you a safer deal.
You will need car insurance for your new car—just use Jerry to find the best prices for the coverage you want. The average Jerry user saves $879 a year on car insurance!
Lauren Smith
Answered on Nov 11, 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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