Vehicle Financing after Auto Settlement? Yes or No

[firemartinez1980]

I had a Repo in 2012 and also in 2013 due to going through a divorce and couldnt pay.

I bought a vehicle in 2016 and made the first 3-4 payments and then as luck would have it I ended up having to pay over $30,000 in attorney fees to gain custody of my son after his mom tried taking him out of state (LongStory)....So that vehicle was never a Repo, but was eventually "Charged-Off", however I did make a Settlement on it and paid that and it now reports as $0 balance.

Now I need a vehicle.....What chance do I have getting financed?

Current Credit scores are around 600 and I have No other Debt. Income is about $45,000 annually

[pinkandgrey]

I suppose it depends on the car/dealership, but I would assume you could get financed. However, the rate may be quite high. I’m sorry I can’t be more help, but good luck to you! 

[Anonymous]

Yes you can probably get approved for a used car, new ones will be tougher as they depreciate too quickly.

With a potential high interest rate please try and get GAP insurance as you will be upside down for a long time on the loan as it will depreciate faster than you you are paying it down and this prevents owing money on a car if it's totalled.

Also if possible make sure the loan does not have prepayment penalties so you can refinance when your credit improves and the loan to value is within 120% of NADA value or whatever book the lender uses.  This could take years but I would hate for you to be in a position to save money and find out the sneaky evil lender has a prepayment penalty.