Having multiple repossessions on your credit report can feel like a major roadblock when trying to purchase a car.

While repossessions can severely impact your credit score and make it harder to secure financing, they’re not impossible to overcome. With the right strategy and a little patience, you can find financing options and work toward rebuilding your credit.

The impact of multiple repossessions

Each repossession can significantly lower your credit score, often by 100 points or more. These dings can remain on your credit report for up to seven years from the occurrence, making it hard to qualify for auto financing.

Lenders view multiple repossessions as a sign of financial instability, increasing their perceived risk of lending to you. If you’re approved, expect higher interest rates, larger down payment requirements, and stricter repayment terms.

How long do you have to wait to apply for auto financing?

You’ll likely have to wait at least 12 months after a repossession before applying for auto financing. With multiple repossessions, lenders may require an even longer waiting period — sometimes up to two years. However, during this time, actively working to rebuild your credit can improve your chances of getting approved sooner.

Your financing options after multiple repossessions

Though securing financing can be challenging, here are some paths to explore:

1. Buy Here Pay Here (BHPH) dealerships

BHPH dealerships welcome buyers with damaged credit. These dealerships usually offer in-house financing and may not check your credit report. However, their interest rates can be higher, and repayment terms may be more restrictive.

2. Subprime auto lenders

Subprime lenders like Credit Assurance specialize in working with those who are credit-challenged. We assess your overall financial situation rather than focusing solely on your credit score. We also work with over 12,000 dealerships nationwide to help buyers with credit challenges get approved for financing. Whenever you’re ready, you can start the auto financing pre-qualification process.

3. A large down payment

A great way to offset a lender’s risk is by saving for a substantial down payment. Having more cash upfront lowers the amount you need to borrow, which could increase your chances of approval (along with better terms).

4. Cosigner support

Having a creditworthy cosigner can significantly improve your approval chances. A cosigner agrees to take on the responsibility if you're unable to make payments, reducing the lender's risk.

5. In-house financing programs

Some dealerships offer their own financing programs that can be more flexible for buyers with difficult credit situations. These programs may offer higher interest rates but can provide a stepping stone to rebuilding credit.

How to rebuild your credit after multiple repossessions

To improve your credit and get better terms in the future, here are several ways to start rebuilding:

1. Pay off outstanding debts

If you still owe money from past repossessions (a deficiency balance), pay it off or work with lenders to settle the debt. Clearing these balances shows lenders you're serious about improving your financial situation.

2. Make on-time payments

Your payment history weighs heavily on your credit score. Pay all current bills and debts on time, every time. Setting up auto-pay or reminders can help you avoid missed payments.

3. Use secured credit cards

Secured credit cards require a refundable deposit and are easier to obtain with bad credit. Using a secured card responsibly can help rebuild your credit through a positive payment history.

4. Lower your credit utilization

Strive to keep credit card balances below 30% of your available credit limit. Lower utilization can have a positive effect on your credit score.

5. Monitor your credit report

Regularly review your credit reports for errors and dispute any inaccuracies. Once a year you’re entitled to a free credit report from each of the three major bureaus — Equifax, Experian, and TransUnion — at AnnualCreditReport.com.

The types of cars that are easier to finance

Certain types of vehicles are easier to finance when you have multiple repossessions.

• Lower-priced used cars: Less expensive vehicles require financing a smaller amount, making lenders more comfortable approving financing.
• Older models with higher mileage: Vehicles that have already depreciated are generally more affordable and can be easier to finance.
• Economy brands: Reliable but budget-friendly brands may be more accessible through alternative financing options.

Plan ahead for your next purchase

Although having multiple repossessions on your credit report isn’t ideal, it won’t necessarily prevent you from financing a car. It just requires you to take steps to rebuild your credit. Get pre-qualified for auto financing through Credit Acceptance today if you’re ready to drive away in your next vehicle.