loan for repo car

Can I Get a Loan for a Repossessed Car?

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If you’re shopping around for a bank-owned vehicle, you’ll be glad to know that there’s a wide selection to choose from – and all at great prices. But one question that many car buyers have regarding repossessed vehicles is what type of financing options are available. 

When you purchase a vehicle from a dealership, you have the option to use their financing department. It’s quick and easy, especially if you’re trading in a vehicle at the same time. But when shopping for a repo car online, you don’t have these same options. So what can you do? 

Fortunately, financing for repossessed cars works in the same way as it does for any other car purchase. While there might not be a dedicated financing department on hand, you can still finance your purchase. The difference is that you’ll have to do the legwork beforehand, such as by filling out applications and getting pre-approved. 

Let’s cover the different financing options you have when buying a bank-owned vehicle. 


RepoFinder offers a huge database of repossessed vehicles from different banks. Banks are highly motivated sellers that are often willing to negotiate. And, the benefit in buying from them directly is that they can provide you with financing as well. 

You can also obtain financing through a bank before buying a car. All you need is a pre-approval, and you can present this to the seller when you’re ready to purchase the vehicle. Your loan will be finalized when you purchase the car. 

Credit Unions

Credit unions work similarly to banks, though there are a few differences. To apply for a loan through a credit union, you typically need to be a member, which involves opening an account and making a deposit.

The benefit to credit unions is that they are more lenient than banks. If you have poor credit or a limited history, they’ll be more understanding. At the same time, they are not as convenient as banks. You may have to make your payments through mail instead of online, for example. 

Online Lenders 

Another option that car buyers have is to obtain financing through an online lender. Since most people shop for repo cars online, you may find it easiest to access financing this way. Online lenders are fast, convenient and often have lower rates. But you’ll still want to do your research and compare rates. 

The only thing to watch for with online lenders is that they don’t always have the best customer service. They’re designed to be quick, streamlined and convenient, so customer service is generally online and not through a real person. 

The most important thing to know is that you can get an attractive, flexible loan with great terms when buying a repossessed car. To shop for bank-owned vehicles in one central location, browse through the RepoFinder database today.