How to Buy Another Car When Your Car Is Repossessed
- 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.
Source...