How to Buy Another Car When Your Car Is Repossessed

Most people need reliable transportation to go to work and take care of personal affairs. But if you recently lost your vehicle to repossession, you may have to rely on public transportation or other people to get around. A repossession stays on your credit report for seven years and lowers your FICO credit score. A low credit score can limit your financing options. However, several techniques can help you acquire another car after losing your vehicle to repossession.

Instructions

1

Pay cash and avoid a car payment. Check local used car dealerships to see if they have a selection of low-priced automobiles. Paying cash alleviates credit checks and high finance fees.

2

Get someone to sign the auto loan agreement with you to qualify for another car after a repossession. Submit the co-applicant's personal and financial information with your application.

3

Finance a cheap car to keep your loan manageable. You'll likely pay a high interest rate if financing the car, so avoid a high car note by selecting a vehicle with an inexpensive price tag.

4

Put a down payment on the car if financing the purchase. A down payment (around 20 percent) decreases how much you will finance with a bank. This can compensate for paying a higher rate on the car loan.

5

Go to a privately owned dealership. Sub-prime and privately owned dealers may offer in-house financing and give you a car loan with a repossession in your past. Research lenders first, and acquire quotes before making a decision. Plan to pay a higher rate on the vehicle loan.