New Car Loan After Repossessions | All Credit Types Accepted

Have you had a vehicle repossession or surrendered a vehicle that became unaffordable or unreliable?

Vehicle repossessions happen for various reasons and can impact your ability to get approved again. Here are some of the most common reasons for repossession:

Job Loss or Drop in Income
Health Issues
Unreliable Vehicle
Divorce or Change to Personal Financial Situation
Bankruptcy or Consumer Proposal

At Progressive, we understand that things happen in life that can derail your plans and alter your current situation, leaving you without a vehicle. We are here to listen, and most importantly, we are here to help. We have specialized finance, rental and lease programs that can help you get a vehicle, even with a history of repossession.

What we would require upon Approval:

Driver’s licence
VOID Cheque
Income verification – this takes on many forms. Most lenders generally accept paystubs; some will require a banking verification (see below), and some require both. For some applicants, in certain situations, tax documents may be required – generally, this applies to Self-Employed individuals, sub-contractors, etc…
Vehicle Insurance and Registration

FAQ’s

The bank didn’t repossess my vehicle – I just returned it to the bank, is that considered a repossession?

Technically, it is a “Voluntary Repossession”, but it reflects on a credit report as “I8”, the same as a regular repossession.

My vehicle was repossessed very recently, will I qualify?

Most likely, yes. You may require cash down and may be capped at a lower dollar amount for a new approval. A co-signor may also help the strength of your application.

I have had more than 1 repossession, now what?

The more repossessions you have had, the more difficult the approval process becomes, and the higher the interest rate will be. You should apply to see what options you have.

What is a banking verification?

Banking verification uses software to communicate with your financial institution, to get information about your regular payments, payroll and other regular deposits, and to evaluate credit risk. Many lenders have turned to this style of income verification, as it is more accurate and much quicker than paystubs and job verification phone calls. Generally, applicants who complete banking verification get a lower interest rate than those who do not.

I’m Self employed – will I qualify?

Many factors influence this, including monthly cash flow, vehicle type and usage, state of CRA account, and cash down. You should apply to see what your options are.