In most cases, eviction shouldn't impact your ability to keep your auto loan. However, a permanent address is typically a requirement of getting a car loan – especially if you're already dealing with a tough credit situation.
Getting a Car Loan During Eviction
If you're in eviction proceedings while you're attempting to finance a vehicle you may not be successful. Most lenders, especially those that work with bad credit borrowers, require you to have a residence and to have been living there for some time.
Typically, residential stability helps a lender have confidence in a borrower. It also helps lenders in the event of repossession, should they need to contact you or reclaim a vehicle if you've defaulted on a loan.
There are exceptions, though, such as for people who travel for work, so be sure to check with your lender if you're in a unique residential situation.
What Happens to My Loan if I Get Evicted?
If you already have an auto loan and become evicted from your residence, it likely doesn't have an impact. Your eviction isn't listed on your general credit reports or the one that an auto lender is likely to see. If your eviction is due to missing rent or mortgage payments, though, these may be reported and negatively impact your credit score.
Talk to your lender if eviction could impact your auto loan. If eviction makes your finances tight, or you become unable to make your payments, you may be forced to ask your lender for a deferment. In this case, they should know what's happening beforehand.
Can I Buy a Car Without a Permanent Address?
Yes, you can buy a car without a permanent address, as long as you're paying in cash. If you have excellent credit, getting a vehicle financed without a permanent address may not be as tough as it is when your credit score is suffering. However, you need a permanent address to register and insure your car, so having an address is a crucial step in the car buying process.
Residency Requirements and Auto Loans
Typically, residency requirements go along with the other requirements of financing a car, such as proof of income or proof of identity. If you're in a bad credit situation, due to eviction or anything else, you may face more requirements than someone whose credit score is higher.
The specific residency requirements you need vary by lender. If you're a bad credit borrower, lenders are likely to require a permanent address. This address should be supported with bills or bank statements in your name. Some lenders prefer you've lived in the same location for at least six months to one year.
If you've recently been evicted, and have poor credit, it might be a good idea to wait until you've established a new residence before trying to get a car loan. This can help ensure your car loan qualifications.
Ready to Find a Car Loan?
To make finding the right car loan easier on you, Auto Credit Express has gathered a nationwide network of special finance dealerships that are signed up with lenders that can work with unique situations. It's our mission to get you connected to a local dealer that has the resources to help. Rather than struggling to find a lender on your own, simply fill out our fast, free car loan request form, and we'll get right to work for you. There's never any obligation, so get started right now!