Can I get a car loan with a repossession on my credit?

J

James white

Member
I recently had my car repossessed. I’d been making payments on it for four years without a problem, but I hit a really rough patch, fell into depression, and stopped keeping up with my bills. It’s been a tough lesson and definitely a wake-up call.

Since then, I’ve been getting around Houston using public transportation and Uber. Honestly, it hasn’t been the worst, especially since I work from home and don’t commute daily. Still, living in Houston, having a car feels more like a necessity than a luxury, so I do want to get back into one eventually.

The repossession is now showing on my credit report, but strangely, my score didn’t drop as much as I thought it would. Right now I’m saving up for a down payment. A co-signer isn’t an option, so it’s all on me.

For those who’ve gone through this, how long after your repossession were you able to qualify for another car loan? Did you face higher interest rates, and what steps helped you rebuild your credit along the way? I’m not in a rush to buy tomorrow, but I’d like to have a plan in place for how to get into my next car the right way
 
Man, I’ve been there. Had a repo in 2016 and thought I was screwed for years. I was able to get into another car after about 18 months with a subprime lender. Interest rate was insane (17%), but it got me wheels. Paid it off early and refinanced later when my score improved. Key thing: save as much as you can for the down payment.
 
If you’re in Houston, you might actually be fine using public transport longer than you think. But yeah, lenders usually want to see at least a year or two after a repo before giving you decent terms. Some “buy here pay here” places won’t care but will fleece you. My advice: wait until you have a fat down payment, then shop credit unions first.
 
Your score might not have tanked because repossession doesn’t always hit as hard as, say, bankruptcy. But lenders see it as a big red flag regardless. You’ll probably still qualify, but at a high APR. If you can tough it out with Uber/Metro for 12-18 months while you rebuild, you’ll be in a better spot.
 
I actually got approved 6 months after my repo. The catch? It was a predatory dealer, 24% interest, and the car died in a year. Honestly, I wish I’d waited. Looking back, if you’re not desperate, hold off and keep stacking cash. Repo sucks, but it’s not the end of the world.
 
Honestly, I’d focus less on the loan right now and more on your mental health since you mentioned depression. Money stress + repo is brutal, but you’re already bouncing back. You’re doing the right thing by saving first instead of rushing into another loan.
 
Funny enough, my repo didn’t tank my score either. What killed me was the late payments leading up to it. Took me about 2 years before a credit union even looked at me. When they finally did, I had 20% down saved and that helped a lot. Cash is your friend here.
 
You can get approved for a car loan tomorrow if you want just depends on how much pain you’re willing to take. Places like DriveTime will happily sell you a used Nissan at 25% APR. Whether you should do that is another story. Personally, I’d wait it out.
 
I’m skeptical when people say just get a credit union loan. Not all credit unions are generous. Mine straight-up said no for 3 years after my repo. Ended up having to go through a subprime lender first before refinancing with them later. Just saying, don’t put all eggs in that basket.
 
I’ve worked in auto finance. Rule of thumb: lenders like to see at least 12 months of clean credit after a repo. That means no missed payments on anything. They’ll also usually want bigger down payments—10–20%. So yeah, save up and keep your other accounts spotless.
 
Hot take: You don’t NEED a car in Houston if you WFH and only go out occasionally. Uber + occasional rental might cost less than monthly car note + insurance + maintenance. Do the math. Sometimes owning isn’t worth it after a repo.
 
You’d be surprised how forgiving some lenders are. I had a repo on file and still got approved through Carvana at 15% APR. Not great, but not the worst. If you’re patient and keep your utilization low on credit cards, you’ll bounce back faster than you think.
 
Bro, the used car market is still wild. If you’re not in a rush, you’re kinda lucky. Ride the bus/Uber life while saving up, then scoop something later when rates calm down. Don’t put yourself in another financial trap just to get wheels.
 
The repo itself isn’t the end, but it’s the late pays that stack before it that sting most. Pay off other debts, keep utilization under 30%, and you’ll be back in the 600s pretty quick. From there, loans become more doable.
 
I’m in Houston too. Public transport isn’t terrible if you’re flexible, but yeah it’s not like NYC. Honestly, I’d wait until at least a year post-repo. Lenders will take you more seriously then. In the meantime, stash cash and maybe open a secured credit card if you don’t already have one.
 
Just want to say props for being self-aware and transparent about this. A lot of people hide repos like it’s a scarlet letter. Reality is, millions go through it. You’re already planning smarter than most by not rushing into another bad deal.
 
I got pre-approved for a loan through Capital One Auto Navigator about a year after my repo. Rates were high, but not insane (11%). It felt like a lifeline after taking the bus everywhere. I say check online lenders too, not just local ones.
 
To answer your question: I qualified again about 15 months after repo. Paid 19% interest. Refinanced after 2 years at 8%. So yeah, possible, but patience pays off. If you can stretch without a car for another year, do it.
 
From what you wrote, you’re not in panic mode, which is good. Stick to that. If you treat this like a marathon instead of a sprint, you’ll come out ahead. Repo sucks, but it’s just one chapter.
 
You must log in or register to reply here.
Back
Top