So, here we go. I had my car repossessed in February 2016--3 years today. Me and my wife did pay up and got the vehicle back and eventually it payoff. This was a joint account and obviously we were both responsible for it. I had my separate auto loan since September 2019 and has never been late. Come full circle, I'm trying to finance a CPO (trading in my acura for an audi) vehicle. Question: Will I be qualified for new car loan? Should I wait another year or two to let this derog age? I would love to get some constructive responses Thanks as always, I love this forum.
If the repo was reported to the credit bureaus... I would wait. If it wasn't, then they may look at the late payments and the fact that you "paid in full" the total loan amount. In some cases, this will help if you have the income and you are fullfilling your other credit obligations on time.
I've been where you are trying to go and I don't wanna go back.
APPROVING BANK:AUDI financial BUREAU PULLED:EXPERIAN CREDIT SCORE:635 auto score
SOFT PULL/HARD PULL: hp CUSTOMER STATE OF RESIDENCE:ny NEW/USED:C.P.O. YEAR OF VEHICLE:2017 MAKE:AUDI MODEL6 MILEAGE:11910 FINANCE/LEASE:FINANCE
PURCHASE PRICE:56,995 AMOUNT OF LOAN:65000 [rolled in negative equity] TERM CONTRACTED:72 APR/LEASE RATE:4.99% [can't believe it!] I was paying 16.9% MONTHLY PAYMENT:1100 ANNUAL INCOME:138000 DEBT TO INCOME RATIO:45 MISCELLANEOUS COMMENTARY:AUDI does not use EQUIFAX; audi uses the score from EXPERIAN and USES TRANSUNION as a secondary backup for verification. No income verification because of time at residency and time on the job--17 years. Note: I had 2 auto COs on my credit report-- showing "paid in full" , but maybe because I haven't been late for 3 years on my current auto loan; last late on my mortgage was Aug.2017, student loans last late was 2017. Finance manager told me audi financial predominantly looks at STABILITY--time on the job and residency status. Many of the advice on here were very helpful. Simply do your homework before you go shopping.