Do you even stand a chance of purchasing a new car after repossession?
Yes you do. But the truth is, having a car repossessed, just as going through a foreclosure on your home, will damage your credit and your credit rating will take a big hit. Although the information will stay on your credit report for seven years, that does not mean you cannot purchase a car again.
It will take time to bounce back after your car has been repossessed, but there are steps you can take to help bring your credit score back up so you can apply for a bad credit auto loan or subprime loan for a car. You can eventually get to the point of taking out a low interest rate loan, even though the Repo will stay on your report for the full seven years but it will take a little time and effort on your end.
Clean up and rebuild your credit. Get your credit reports from Experian, TransUnion, and Equifax and compare them to each other. You will see the Repo on the reports, but check to see if anything looks unusual such as opening an account you did not open, old debts that are still showing even after they have been paid off, or small things such as a misspelled name or wrong address. Take steps to correct these items so you can move forward.
Work toward paying off any outstanding credit card debts that you can and start putting money aside for a new car. If you need guidance or information on getting a subprime loan after repossession, come in and speak with us at our Angela Krause Ford dealership near Johns Creek. Our loan officer will discuss your options with you based on your debt to income ratio and can begin the process of pre-approval for a post-repossession new or used car loan.
Even if you aren't able to get approved right away, we can work with you on the steps you should take in order to drive away with a great new car from our Mansell Road Ford dealership. With Angela Krause Ford in Alpharetta, you will find a team of truly caring and dedicated professionals who will work with you to find the best solution for your situation. We have a full inventory of new and used Fords and other models from which to choose.
Just remember to save a reasonable down payment of about 20 percent of the car's worth, and be prepared for a higher interest rate. But the good news is that with on-time payments, you can always come back in later as you work toward raising your credit score, and refinance at a lower rate. It's always a win-win situation with us at our Ford dealership off GA 400 and Mansell Road.