Many customers do not know what to do for their next vehicle purchase after a repossession. At John Amato Hyundai Superstore we specialize in establishing and re-establishing credit even after a vehicle repossession.
What is the Vehicle Repossession Process?
The vehicle repossession process is pretty straightforward. First, you may receive a letter stating your loan payment is past due. This does not always happen. If it is specified in your loan contract, you will get a letter. A few days after the letter is sent, you will get a phone call from the loan company stating that the payment is late and what you plan to do to avoid repossession. After a “grace period” expires the loan company hires a repossession company and they take the vehicle. You will then receive a letter telling you how much you owe for the loan payments and repo fees.
It may feel like the world stopped because your vehicle was repossessed. But, in fact it was a vehicle that you could not afford. It is however a large step back in your financial life, but it won’t stop you from moving forward. Lenders have been loosing the reigns on the car loan requirements and are now willing to assist customer with problems in their credit.
A vehicle repo can greatly lower your credit score and move you down the standings in credit categories. At John Amato Hyundai Superstore, we don’t turn away customers that have had issues in the past. We are here to finance your future not your past. We work out a deal that fits you into a budget, but there are a few things that you can do to help
Determine Where your Credit Stands and Repair it
You know your credit score is going to go down because of the repossession. But it may not be as bad as you think.
Auto loans can be a complicated process and getting approved should not be your only concern. You want to get favorable terms on the loan as well so you can afford your payment. This is all determined by what your credit report says to the lender. For example, your score is not the only factor
Other factors that impact your loan is:
- Slow payments or late payments on loans
- Defaults on loans
- Collection notices
Anyone with these on their credit report will be subject to higher interest rates because they pose a risk to the lender. You must re-establish your standings for long term loan. You need to repair your old debt for better future loans and debt.
If you are behind on payments on other loans, you need to bring those payments current. This shows lenders that you are making an effort to make good with your creditors. Remember, that rebuilding your credit is not an easy or quick process. It takes time, commitment and discipline to stay on top of your bills. But, in the end it is worth it to receive better interest rates and terms in the future.
Be Prepared when you Visit John Amato Hyundai Superstore
Having a down-payment is generally a requirement of anyone with less than perfect credit looking to get an approval for an auto loan. The bigger the down-payment the more options you may have. Having a down-payment tells lenders that you have control over your finances, which in turn, means they are more favorable to approve your loan application
If you don’t have a down-payment, you can trade in your vehicle, whatever equity you have in your vehicle will be used as a down-payment.
After you have figured out your money situation, and schedule a time to come into John Amato Hyundai Superstore Milwaukee, you need to bring in the following items to turn into the lender
- Valid Driver’s License
- Current Proof of Income (pay stub)
- Bill with your name and address on it (utility bill)
You should always bring in the documentation the same day of your visit, so it does not interrupt the loan application with the lenders. It makes the process go by quicker and smoother and will allow the lender to see that you are organized and serious about making a purchase.
When you are speaking with the finance manager at John Amato Hyundai Superstore, keep in mind they are making sure that everything you say is accurate, so it is best to be completely honest. Do not lie about past credit or income. If that happens your loan application may be automatically declined.
Set your Goals Realistically.
You have already been down the road with a vehicle you could not afford the payments on , so do not do that again. Instead come to terms that in fact the car you can afford may not have navigation or leather or a sunroof.
Look at cars that fit into your budget and the parameters that the lender set up. You need to show the banks that you can make on time payments, they are giving you a second chance. Stick to a vehicle with what you need for now. Make your payments on time and your credit will improve, then the next vehicle will probably have all the options that you wanted.
As We See It
Repossession is not the end of the world, it is only a minor set back that you need to correct. You do not have to give up all hope of ever owning a vehicle again, because we can help you. We are a special financing dealership that has the tools and experience to get you into another vehicle. Which in the end rebuilds your credit score.
Get started today by beginning your application at John Amato Hyundai Superstore Milwaukee