How To: 10 Tips for Getting An Auto Loan After Repossession

    Having your car repossessed is not a pleasant experience... for anyone. Often, consumers purchase a vehicle with an auto loan while their financial situation is good and one major financial incident can send a good paying loan customer into a tailspin of non-payment. What makes vehicle repossession even more difficult is the fact that the consumer needs the vehicle as a means to get to work, and getting to work is likely the only way out of the financial situation that put them into repossession in the first place. One unexpected medical issue, layoff or difficult circumstance can negate your ability to make your car payment, and send you on the road to repossession. A repossession can be catastrophic for a family that depends on a vehicle to get to work, and make it impossible for consumers to turn the situation around. If your car has been repossessed it will be more difficult for you to get a loan, much less a good interest rate. Most prime lenders and banks will not loan a vehicle to a consumer that has a recent repossession, but there is hope. There are lenders and dealerships that will lend money to sub-prime borrowers including those with a history of repossession. Getting a car will get you back on the road and one step closer to fixing your financial mess..

1. Pay Off Your Loan
Now hold on.. You're probably thinking "If I could have paid off the loan, I wouldn't be in this situation to begin with." and you're right. We're not trying to aggravate you any further by suggesting you do something that is quite obviously impossible. What you may not know is that when a car is repossessed it is resold, usually at an auction, to pay off the remainder of the loan. The difference in that amount (minus fees and other charges) is what you owe after the repossession. It may not be an exorbitant amount... It may only be a few hundred dollars that you could pay off completely. That would stop any further collection and damage to your credit score, making it easier (and cheaper) to get another loan.

2. Contact Your Lender
The old adage "you never know until you try" rings true... even in the case of repossession. Your prior lender may be willing to work out an agreement with you to avoid further credit damage. You'll need to find out how much you really owe after fees and credit from the sale of your previous vehicle. There's no negative in attempting to negotiate with your lender.

3. Call The Credit Bureaus
One simple credit fix that is less well know is this: the credit bureaus will attach a short note to your delinquent credit items at your request. It won't change your score or remove the item, but it will give potential lenders reviewing your credit a short explanation of your side. 

4. Get Your Credit Report
Your repossession will have an affect on your score and history but until you pull your report, you have no idea where you stand. The affect of the repossession may not be as bad as you think, especially if you have other accounts that you have been able to pay on time. By law, you are permitted to view your credit report from all three credit bureaus one time per year. 

5. Do What You Can To Fix Your Credit
It's possible that there are other, easily fixable negative items on your report that is damaging your score. Even with a repossession, repairing other items on your report could mean the difference between driving or walking, and a percentage rate of 2 or 20 percent. If you can, wait as long as possible before purchasing another car. While this is not feasible for everyone, letting some time pass since your repossession and even opening a few secured credit cards can do wonders to your score.

6. Start Saving A Down Payment
Unfortunately if you have a recent repossession, the only way you will be able to get an auto loan is with at least a minimal down payment. Start saving what you can. By the time you find a lender and vehicle, you will hopefully have enough for your down payment.

7. Be Reasonable
"The sky is the limit" is no longer an option for consumers with recent repossessions. It's likely that you will not be able to get a newer model expensive vehicle. You may have to bring your expectations down a few notches. There is a limit to how much a sub-prime lender will allow you to borrow and you should be searching for an automobile within that range.

8. Find A Lender Before You Find A Car
Many consumers that are new to sub-prime lending make the mistake of searching for the car and then searching for the credit. For those with recent repossessions, you're going to need to find out how much a lender will approve you for before you find a car that you love.. and can't afford.

9. Visit A Dealer That Offers "Special Financing"
To find a dealership that works with sub-prime borrowers, search for dealers that advertise car loans for bad credit or special financing. These dealerships will have sub-prime lending options that mostly consider your income as opposed to your credit. You will pay more in interest, but they will be able to get you back on the road.

10. Buy Here Pay Here 
If all else fails, you can look for a dealership that offers Buy Here Pay Here. If you have no income, Buy Here Pay Here will be pretty much your only option. You'll need more for a down payment and will also have a higher interest rate, but they will be able to get you a car loan.


By: Used Car World
       Bad Credit? No Credit? No Problem!!
       Apply Online: http://www.usedcarworldpa.com/

Buy Here Pay Here Frequently Asked Questions

We know you need a car to get to work, drive your kids around and do the million other things that people have to get done in a day that are not within walking distance. Many times, people who are inquiring about our Buy Here Pay Here program are new to trying to get a car with challenged credit. They may have been told by a friend or family member that getting a vehicle loan is impossible without good credit. Eventually, someone tells them the only way they can purchase a vehicle is if they find a car dealership that offers “Buy Here Pay Here”. The large majority of customers that call our dealership looking to apply for our Buy Here Pay Here program are unaware that they are eligible for traditional sub-prime financing. Almost anyone, regardless of credit is eligible for special financing. Unless you are unable to verify your income, we can get you an auto loan through one of our sub-prime lending companies. Buy Here Pay Here is only for those who cannot verify income, or provide other types of verification for a regular special financing loan.

Since most of our Buy Here Pay Here customers are not familiar with the process, they have plenty of pre-conceived ideas about how auto financing works and we end up getting pretty much the same questions. Here are the most frequently asked questions about the Buy Here Pay Here program…

How much do I need for a down payment?

That depends. Many of our customers don’t realize that our special financing programs are available to those with bad credit or no credit. Almost all of our customers are eligible for one of our guaranteed financing programs and for those programs, the down payment can be as low as $500.00 plus tax and tags. If you are not eligible for one of our bad credit financing programs, the down payment for a Buy Here Pay Here depends on the cost of the car. Most are half down.

How much per month?

We do our best to work with potential buyers and fit our payment into your budget. Payments are on average $250.00 per month. Some are higher and some are lower. It depends on how much of a car you want and the length of your loan.

Am I eligible? How do I apply?

The best way to find out which of our auto loan programs you are eligible for is to apply online on our website. We have slimmed the application down to only 8 required fields, and we guarantee a preliminary answer by email in ten minutes or less! By applying online, our salesmen are provided with all of your information and can find which financing programs you are eligible for before you even call or come in to the dealership. We also take applications over the phone and in person at our dealership.

Can I use my trade as a down payment?

Absolutely! We take trade-ins and buy cars through our Cash for Cars program, even if you’re not buying from us. Get an online appraisal of your trade on our website.

To find out what auto loan programs you qualify for, fill out a credit application on our website. We guarantee a preliminary answer in 10 minutes or less. View inventory and prices or find out how much your trade is worth. We have the best used cars in Pittsburgh, and can finance anyone.

Car Buying: 10 Biggest Mistakes Made By Auto Loan Customers

Consumers either desperate for transportation or excited about a new purchase often forget that a vehicle is a major purchase. For most consumers, a vehicle is the most expensive purchase they will make aside from their home. Most people wouldn’t rush out and buy a house without careful consideration and it should be the same way when purchasing a vehicle… especially when you’re financing.  Here are 10 of the most common mistakes borrowers make and how to avoid them.

7 Tips For Buying A Car With No Credit or Bad Credit

For consumers with good credit, car buying can be pleasant experience. They can shop

around to find what they like and have finance companies falling all over them to offer a competitive rate. For most consumers, this is not the reality. A majority of car buyers looking to finance vehicles have fair to poor credit and when you’re a buyer struggling with credit challenges, car shopping can be an exercise in futility. If you have bad credit, fair credit or no credit, car buying doesn't have to make you want to pull your hair out. By following a few simple steps, you can make the process less stressful and be on your way to repairing your credit and get back on the road.

What is a Sub-Prime Borrower?

According to Experian's State of the Automotive Finance Market Report for the first quarter of 2014, scores are divided into five categories of ranges. 740 and up puts your score in the "Super Prime" category. 730-680 is "Prime" and 679-620 is "Non-Prime".  That leaves all other consumers in the "Sub-Prime" category with 550 and under being described as "Deep Sub-Prime". According to their Open Loans by Risk report, over 21 percent of all open loans are below prime, with deep sub-prime lending being the highest growing category of open loans. The average credit score of an auto financing customer dropped 10 points from the first quarter of 2013 from 731 to 721. In summary, more lenders are willing to take chances with sub-prime borrowers as more and more consumers are falling into that category. According to Credit-Report-101, the national average FICO credit score as of 2014 in the US is 639, which would place the average national consumer in the "Non-Prime" category. 

Helpful Tips to Pay Off your Auto Loan Early

Nearly 70% of consumers purchase their vehicle with financing. Next to a mortgage or rent, auto installments make up the second largest portion of a person’s budget. When your car payment is such a significant part of your budget each month, paying off early can seem impossible but it doesn't have to be. Here are some (hopefully painless) ideas on how to pay off your loan early. We hear from customers all the time who get their loan with the intention of paying off early. By having a lower payment amount, customers have the flexibility to pay their loan down early but still have the ability to pay the lower amount when the extra cash is needed elsewhere. Here are a few ideas on how to pay off your loan early.

What Kind of Car Can I Get with Bad Credit?

Plenty of good people have credit problems. Ending up without a vehicle and limited resources only compounds the problems. How can you get out of your financial situation if you can’t get to work? People can be left feeling completely helpless. At Used Car World, we work primarily with people in tough credit situations. Good people who just need a chance to get back on their feet. We get questions from customers all the time that have misconceptions about how bad credit programs work. Some have heard or dealt with dealerships that limit bad credit customers to specific vehicles, or believe that they may be forced into buying a car they don't want. That's just one of the many things that makes us different than other dealerships. We will do our absolute best to get you the car that you want, and we will make sure to get you a car you love and can afford.

What kind of car can I get?

Check Out Our New Program Pages

New pages for each program were just set up! See which one you qualify for!

SPECIAL FINANCING

Have income? You’re approved!

Bring in a pay stub or proof of income, and we'll get you a loan! We don't care about your crappy credit! Our down payments are as low as $500.00 plus tax and tags. We accept people with all kinds of credit problems including repossession, divorce and bankruptcy. 

We use a network of sub-prime lending companies to find you a loan that works with your situation. Apply online on our website, or check out our Special Financing page for more information!

BUY HERE PAY HERE

No income? You’re approved!

We have financing programs for everyone including the Buy Here Pay Here program. If you are a special case customer that is unable to meet the verification requirements of our special financing, that's OK! We can still get you a loan.Our Buy Here Pay Here program accepts everyone, and no verification is necessary. Apply on our website or check out our Buy Here Pay Here page for more information!

 CASH FOR CARS

We'll buy your car.. Even if you're not buying ours!

Need quick cash? Having down payment problems and need to use your trade? We'll buy your car and give you the most money for your vehicle. Our expert salesmen will give you a free appraisal on your vehicle and pay you in CASH today. Getting cash for your car is easy! Use our online instant appraisal tool. Want more information? Our Cash for Cars page has all the information you need!

Visit our site and apply for any of our financing or auto buying programs.

Rebuilding Your Credit With An Auto Loan

You may have been a victim of financial hardship. Bankruptcy, divorce, job loss and medical bills can take a toll on people’s credit rating. People who find themselves in need of credit repair often find that repairing their credit can be difficult when you are unable to get approved for loans or financing.  At our dealership we find that consumers are not only looking for a car loan.. they are looking for a second chance. Many consumers are unaware of the positive impact an installment loan, like a car loan can have on their credit rating.

How Can An Auto Loan Help My Credit?

Monthly Reporting

Lenders, like ours report to credit bureaus. Paying installment loans on time is one of the

Will Shopping Around For A Car Loan Damage My Credit?

         We hear from customers buying a used car all the time that are worried about making credit inquiries at multiple dealerships while car shopping.  It’s especially worrisome for those with challenged credit because they are worried about damaging their credit any further, but are forced to shop around to find a company that will give them a loan. Like in most other financial situations, people with bad credit are left with few options. 

         First, it’s important to note that all credit checks are not the same. Checking your own credit does not affect your credit score at all. This common myth has been debunked countless times by credit experts. Any consumer that would like to keep track of their credit can and should pull their Equifax, Experian and Trans Union credit reports for free once a year at AnnualCreditReport.com.  While it is true that your credit score could possibly be affected by running multiple credit inquiries in a short period of time, the affect is minimal and temporary. FICO has released

Car Buying - I Have A Guaranteed Approval... What Should I Bring To TheDealership?

If you have recently applied online for an auto loan and received a preliminary approval, you may be wondering what happens next. We get tons of questions about what type of documentation to bring and how the process works. If you've purchased a vehicle before, then you have some general knowledge of the car buying process. If you paid cash for your car, you would have been processed fairly quickly and simply came to the dealership to pay for the vehicle and sign sale documentation. When you are getting any financing, especially bad credit financing you will be required to bring verification items like proof of income, residence, and other necessary items to close your car loan depending on your specific situation. 

Here is a breakdown of the items you will need to bring to ensure your loan will close and speed up processing so you can drive away in your new car..

• IDENTIFICATION
• PROOF OF RESIDENCE

You can bring utility or phone bills. Make sure that there is an address listed on the bill, and bring the most current bill you have.

How Does Sub-Prime Financing Work?

         Not everyone has had a perfect credit history, and most times it's through no fault of their own. Young consumers don't understand that every financial decision they make since the day they turn eighteen is tracked on their credit reports. Yes, some people make bad decisions, but most people want to pay their bills on time. It just so happens that sometimes, people are forced to choose between two necessities. Others have simply been a victim of circumstance... Divorce, accidents, unexpected medical costs, or loss of a job can affect a consumer's credit rating. Auto finance companies prefer those with "Prime" credit, meaning those who have excellent credit and haven't fallen on hard times and were unable to pay a bill or two on time. Everyone one else outside of that "Prime" category would be considered "Sub-Prime".