Finance Application

• To apply for a refinance or a new finance account, decide which lender to apply to. Because of your repossession history, it may prove worthwhile to apply to a bank you have a good payment history with, even if the loan has been satisfied. Otherwise, you can call local banks to find out more about the approval and application process. Talk to a loan representative to discuss your credit concerns and financing options. If your repossession was years prior, it may not significantly affect your current loan application.
  
  

Down Payment

• If your repossession was recent or you have not yet reestablished your credit, a down payment will probably be required for a loan approval. Banks decide the lending amount of a vehicle's value based on credit history. If you have poor credit, this amount can be as low as 60 percent of the vehicle's value. Unless you can purchase a vehicle for 60 percent of its market value, which is highly unlikely, you can expect to put down 40 percent of the car's price in addition to taxes and/or fees.
  
  

Interest Rates and Term

• If you have poor credit, a bank may restrict the term of your loan. A shorter loan term increases and maintains equity in the vehicle, which is beneficial for the lender. Your interest rate will also be higher than average; some states cap the interest rate at 29 percent. A shorter term and higher rate can significantly raise your payment by hundreds of dollars every month. A refinance may not be worthwhile because of the repossession, unless you have successfully reestablished your credit.
  
  

Other Options

• Work with a dealer if you want to initiate a new loan. Rather than send in your application for approval or denial, the dealer can send in the application for a "payment call," which allows banks to make an offer based on the down payment, vehicle value requirements and loan term. This allows you to shop for a car within bank guidelines and your budget. A co-signer can also help. If you can find a good co-signer, you can refinance or start a new loan with a lower rate, longer term and less money down.