Auto repossessions stay on your credit reports for up to seven years. It negatively affects your credit score, but the impact decreases as time passes. So, it’s very possible to get a car loan after repossession, but you may run into some challenges if you need one immediately following a repo.

Dealerships that Accept Bad Credit and Repos

Depending on how long it’s been since the repossession took place, you may be able to get financing through a subprime lender. The majority of subprime lenders look for a repo to be at least a year old before they consider an applicant (unless it was included in a bankruptcy), but some may be willing to approve you even if the repossession isn’t a year old yet. What these lenders don’t like to see are multiple repossessions, and if you have more than one, it hurts your chances of getting approved.

If a subprime lender isn’t able to help you, or you need a car quickly, your best bet is to find a buy here pay here (BHPH) dealership. BHPH dealers are in-house financers, meaning you can get your loan and car through the same place. These dealerships typically don’t run credit checks, but use your income to determine what you qualify for. Even if you have multiple repossessions, you have a much better chance of approval with a BHPH dealer. However, the downside to financing through these types of dealerships is that they usually won’t report your loan or positive payment history to the credit bureaus, and you generally have to pay in person, either weekly or bi-weekly.

Preparing for an Auto Loan after Repossession

If you know you want to finance a car after repossession, the best thing you can do is prepare and budget. Here are three things you can do to get yourself ready to finance after repossession:

  • Get a Car Loan with a RepossessionHave a down payment ready – A down payment is usually required by both subprime lenders and BHPH dealers. For subprime lenders, you can expect a minimum of $1,000 or 10 percent of the vehicle’s selling price down, whichever is less. On the other hand, BHPH dealerships have varied down payment requirements that are typically based on the cost of the vehicle.
  • Keep up with your other payments – You don’t want to put yourself in a situation that negatively affects your credit even more. Make sure you’re on top of all your monthly bills.
  • Review your credit score and reports – When you’re ready to finance, it's a good idea to view your credit score and reports. Your score can be accessed in a number of different ways, such as through your credit card provider, directly from FICO through, or through third-party websites. You can request your credit reports for free by visiting

Looking to Finance a Car Loan?

Whether you have a repossession on your credit reports or not, Auto Credit Express wants to help you find a local dealership that can work with you. We’re connected to a nationwide network of special finance car dealers who work with all kinds of credit situations. We can help you on the path to your next auto loan if you simply fill out our safe and secure online auto loan request form!