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Tips on buying a new EV after a repossession

Tips on buying a new EV after a repossession

If you need to buy a car but have a recent repossession on your credit report, you're in the right place.

We're going to talk about what you should do to improve your chances of getting a new car loan, but you have to stick around and keep an open mind.

When did the repossession take place?

If you had a car taken away less than a month ago, your chances of getting a car loan are practically zilch.

It takes a few weeks for the car that was repossessed to go through the auction process and for your current lender to put the payment from the auction against your outstanding loan.

After this happens, there will be derogatory comments added to your credit report.

Once the repossession shows up on your credit report, you should make a deal with the creditor to pay off the rest of the loan.

With the used car market at an all-time high, you might be able to break even or even make money, but the bad thing will still show up on your credit report.

Getting ready to explain why the car was taken away

People who want to lend you money will wonder why you didn't keep your promise to the last lender, whether Covid caused you to lose money or end a relationship.

Having a response ready show that you are aware of the problem and are willing to take full responsibility for it.

This does not guarantee the lenders are going to give you the loan, but being prepared will reduce any anxiety you may be feeling.

Get your finances in order ASAP

Now is a good time to get your finances in order so you can make the most of your hard-earned money. If you don't have a budget, you won't know if you are making enough money to pay off your debts.

Even though most of us didn't learn about personal finances or budgeting in school, it's something that everyone can learn.

Once you start, it's pretty easy. Once you have a budget, any extra money should go toward paying down your debt.

When you lower the amount of debt you have, it helps you in two ways

The total amount of debt you have has a direct effect on how much interest you pay. In other words, the less you owe, the less interest you pay towards servicing that debt.

Your credit score will go up if you use less of your available credit. When your credit score goes up, it makes it cheaper to pay off any debts you have now or will have in the future.

When you have a repossession on your credit report, where can you get a car loan?

Despite what the websites say online, most of them can't help you get a car loan because they don't have the same long-term relationships with lenders that your local car dealership does.

If you work with a local dealership, they will be able to get you approved, no matter how hard or impossible it seems. You need to go to your local neighborhood dealership as soon as possible to look at your car loan options.

If you need help or advice on anything to do with electric vehicles, contact Car Nation Canada today, we can help!

Categories: Electric Vehicles