{"id":16393,"date":"2024-06-03T09:18:13","date_gmt":"2024-06-03T15:18:13","guid":{"rendered":"https:\/\/www.lexingtonlaw.com\/blog\/?p=16393"},"modified":"2025-06-05T15:52:35","modified_gmt":"2025-06-05T21:52:35","slug":"getting-car-after-repossession","status":"publish","type":"post","link":"https:\/\/www.lexingtonlaw.com\/blog\/negative-items\/getting-car-after-repossession.html","title":{"rendered":"7 ways to get a new car loan after repossession"},"content":{"rendered":"\n
\"Buying<\/figure>\n\n\n\n

You can get a new car loan after repossession by finding a cosigner, negotiating with your previous lender, disputing inaccurate items on your report, saving for a larger down payment, shopping around for better rates, trying to get preapproved for a loan or improving your credit.<\/p>\n\n\n\n

The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. <\/em>See Lexington Law\u2019s editorial disclosure for more information.<\/em><\/a><\/p>\n\n\n\n

After your car is repossessed, your credit report will include a negative item that notes the repossession. As a result, it can be much more difficult to get a new car loan, since creditors take payment history into account when evaluating your loan application. That said, you can work toward finding a new car loan by addressing inaccuracies on your credit report, building your credit or finding a cosigner.  <\/p>\n\n\n\n

If your car has been repossessed<\/a>, you may be in need of a new vehicle for essential transportation. Unfortunately, the negative item that shows up on your credit report after a repossession makes it more difficult to secure a new loan. <\/p>\n\n\n\n

Many lenders may be unwilling to offer you a new loan, or they may offer a loan with a high interest rate, which could make it difficult for you to pay it back. <\/p>\n\n\n\n

Instead of agreeing to loan terms that may not suit you, try some of the following ideas to get a new car loan after your car has been repossessed. <\/p>\n\n\n\n

1. Find a cosigner<\/h2>\n\n\n\n

Having someone with strong credit cosign on a new car loan is a way to get a better interest rate. A favorable loan will provide the opportunity to rebuild your credit by paying on time each month. <\/p>\n\n\n\n

A cosigner will be equally responsible for the loan, so it is usually best if you sign with a trusted friend or family member. <\/p>\n\n\n\n

2. Negotiate with your previous lender<\/h2>\n\n\n\n

Writing a goodwill letter<\/a> to your previous lender can lead to an agreement where the negative item is removed in exchange for a fixed amount of money. Make sure to get any agreement in writing before settling the loan. <\/p>\n\n\n\n

If your debt has already gone to collections, you may need to settle the original loan and the collection account separately. In any case, working to have negative information removed from your credit report will make it easier to get a new car loan. <\/p>\n\n\n\n