Yes, you can buy a car after repossession! This article will help give you information to better understand what you need to do.
What is a vehicle repossession? When someone isn’t making their regular payments the bank that gave them the loan will take back the asset.
This can happen in different ways, most commonly as an involuntary repossession. When a person defaults multiple payments and refuses to return the vehicle to the lender. There is also what’s called a voluntary repossession, when a person realizes they can’t continue to consistently make their regular payments and they willingly return the vehicle to the lender.
Usually having your vehicle repossessed will drop your credit score between 60 points and 240 points. It can also leave a “credit risk” mark on your credit report for up to 7 years. Fortunately, you can rebuild your credit without issue in the meantime.
Repos are pretty normal in the auto industry, they can happen to anyone and are a fairly common occurrence. If you’ve had a vehicle repossessed there is no need to worry. You can still get into another vehicle, you just need to be aware of and understand your current situation.
After they re-sell your vehicle any money you have left owing on the contract will need to be paid. However, you can still get a new loan while you work on paying off the precious loan. The best course of action to take at this stage is to get a good, credible Financial Advisor to help make the most of your situation.
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