Get a Car Loan Approved with a Previous Repossession - Car Loans in
Canada
There are 2 Types of Repossession in
Canada
-
Involuntary Repossession – An
involuntary repossession occurs
when an auto lender has the
financed vehicle seized. This
almost always happens when car
payments are behind, the debtor
is not cooperating and the
lender has no choice but to send
the vehicle out for repo.
-
Voluntary Repossession – A
voluntary repo occurs when a
struggling debtor decides that
they can no longer afford their
car payments and that they have
no choice but to give up the
vehicle. For a vehicle to be
voluntarily repossessed the car
must be returned by the debtor
instead of seized by the
creditor. While a voluntary repo
is helpful to the creditor
because it means less collection
and repossession expenses, it is
still a serious case of bad
credit and will result in a
negative credit rating as well
as a large vehicle write off.
Getting approved for a vehicle loan immediately following a repossession
is possible.
In order to get the lowest rate
following a repossession, it's best
to get quotes from several lenders,
which is exactly what we do.
If you are not a good candidate for
a low interest auto loan, you may
have to settle on a higher interest
car loan. After nine months,
refinance the loan for a lower rate.
