With the demand of car loans at an increase, the numbers of repossessions in Canada are growing. If the unfortunate event of repossession happens, what does that mean for the buyer? Repossession does not mean that the buyer can no longer get into another car loan, although obtaining an approval can be more difficult. Since a repossessed car loan can stay on your bureau for 7 years, it is important to know that it is possible, and also what to be mindful of when starting the process.
When try apply for a car loan with a previous repossession in your bureau, you should always equip yourself where necessary to increase your chances of securing the loan that your want. Consider finding a co-signer and preparing a down payment will help. By having a qualified co- signer, you will obtain a more ideal approval than applying alone. The down payment will also help satisfy lender’s payment call and bit of equity to secure the deal. Another important thing to note is to work with a suitable lender. When applying for a car loan, choosing the lender is the responsibility of the business manager but it is also good for buyers to know that certain lenders are more inclined to consider different circumstances that led to the repossession. The last thing to pay attention to is the status of the repossessed car loan. Is the vehicle sold at the auction and there is still a deficiency balance that is outstanding? How long ago was the repossession? These questions are very important to address. If there is still an outstanding balance owing on that car loan, it is ideal to have that paid off before you approach another car loan.
Repossession is one of the many unfortunate circumstances that people find themselves in. Do not let yourself shy away from getting another loan as it will not only put you behind the wheel again, it can also rebuild your credit. If you are ready to take on a car loan after repossession, give Autorama a call at 416-639-4813 and speak with one of our financing specialists or fill out our online finance application https://www.autorama.ca/financing/ for a pre-approval today.