If I Had a Vehicle Repossessed, Can I Still Buy a Car?

A vehicle repossession occurs when a payment to the company that financed the vehicle is late. A repossession can occur even if the payment is only one day past the payment due date. A vehicle repossession will affect your ability to buy a car in the future.

Effects

When your vehicle is repossessed, it will show up on your credit report. This will lower your credit score, which will not only make it more difficult to buy a car, but to finance other items, apply for a mortgage or be approved for a rental property.

Time Frame

A vehicle repossession will remain on your credit report for up to seven years. The seven-year period starts from the first day that the finance company has reported your payment as being late and not becoming current.

Considerations

You have several options for purchasing a car after a vehicle repossession. You can either buy a car for cash or wait until the seven-year period is over and the repossession no longer appears on your credit report. If you do not have a lot of money to purchase a car or are not able to wait to make the purchase, you may be able to buy a car at a car lot that offers in-house financing and does not perform credit checks.

References

• Fair-Debt-Collection.com: Having a Vehicle Repossessed
• Experian: Vehicle Repossession and Your Credit Report
• Federal Trade Commission: Vehicle Repossession Laws