If you’ve experienced a vehicle repossession, getting back on the road can be challenging. However, "repo-friendly" or "second chance" car dealerships that deal with repos specialize in helping buyers secure financing and purchase reliable vehicles.

What buyers with repossessions can expect

Repo-friendly dealerships often partner with subprime lenders like Credit Acceptance, which focuses on helping individuals with challenging credit histories. These lenders look beyond your credit score and towards your current financial stability, making it possible to get approved even if you have a repossession in your past.

While the interest rates may be higher than those offered to buyers with good credit, these dealerships provide an opportunity to rebuild your financial standing.

Enjoy flexibility that meets your needs

One advantage of working with a repo-friendly dealership is they offer:

• Longer financing terms to reduce monthly payments

• Lower down payment requirements for easier approval

• Custom financing options tailored to your situation

These terms can make obtaining financing and purchasing a car more manageable, though you could pay more in interest over time.

The timing of your financing application is key

Most lenders prefer to work with buyers whose repossession occurred more than 12 months ago. However, some repo-friendly dealerships may consider your application sooner. If your repossession was recent, improve your financial situation by addressing outstanding debts before applying for financing. Demonstrating financial responsibility since your repossession is important.

Look for personalized support and financial guidance

Reputable repo-friendly dealerships often provide additional resources to help buyers succeed. These may include:

• Financial consultations to assess your budget

• Credit repair programs to improve your financial health

• Personalized customer service to guide you through the car-buying process

These services can be invaluable in helping you make informed decisions and prevent future financial setbacks.

Research the options before you commit

It’s critical to research repo-friendly dealerships thoroughly. To ensure you’re working with a reputable dealer:

• Read online reviews and customer testimonials

• Verify that the dealership practices transparency in its terms and fees

• Avoid dealerships with aggressive repossession policies or unclear finance terms

Buying a car with a repo in your past is doable

Finding a dealership that works with car buyers who’ve gone through repossessions is possible, but approach the process with caution and preparation. Look for transparent business practices, read customer reviews, and make sure you understand all terms and conditions before signing any financing agreements.

If you need help finding a dealer near you who works with credit-challenged buyers, we can help. And when it’s time to finance your vehicle, start by pre-qualifying online.