Secondary lenders / Repo Question

What is the name of your state? north carolina

Husband and I applied for car loan but repo on his report is still showing negative even though it was paid off. My credit isn't perfect but I have paid off a house in the past, it shows as a R-1. They stated they would have to go through a secondary lender (whatever that means) but are unsure what they can do b/c of the repo. Is there anything we can do to help our situation, like an explanation ltr? What are these secondary lenders like to deal with? We do have cash to put down, will this help?

Thanks!!!

[Ladynred]

This 'secondary lender' is nothing more than some sub-prime lender for people with bad credit. The interest rate you'll get offered will be pretty steep and ugly. Even a higher down payment won't help a whole lot.

Does your DH's credit report show the repo as paid, or is it showing as an open collection with a balance due ?

IF its not showing as paid, you need to dispute that with the credit bureaus as inaccurate. The repo isn't good, but at least showing it as paid will help a little.

Yes the repo is showing as paid. From what the business manager was saying though it still looks bad on him, the same way as if he didn't pay it.

Are the secondary lenders willing to finance the same type of car a primary lender would finace? We are looking at a 2000 Honda Accord.

Thanks!!!

[Ladynred]

Yep, paid collection/paid repo - all bad. The fact that it had to be repo'd is the huge red flag to lenders.

Sub-prime lenders should get you the same car, they're just going to gouge out your liver with the interest rate.

[StickyFingers]

they're just going to gouge out your liver with the interest rate.

Sooo true! I bought a truck with 'secondary' financing..From the time I drove off in the truck, I was upside-down in it. I owed twice what is was worth **************lesson learned!

Thanks soooo much for the information. This really sucks!! It's like these banks think noone is to be less than perfect. We've all been down a rocky road once in our lives and I believe everyone deserves a second chance. Oh well, life goes on....right???

[StickyFingers]

Not to be rude but......

This really sucks!! It's like these banks think noone is to be less than perfect.

Yes it sucks...but if you were on time with your payments and honored your previous agreement with the prior lending (automobile) institution, then you wouldn't need a 'secondary'. (In my situation, I didn't have a repo, I just had crappy credit).

. We've all been down a rocky road once in our lives and I believe everyone deserves a second chance.

Yep..Have you ever heard the slogan...."Bad things happen to good people"...'secondary' lenders use it quite often in their promotions. You are not perfect...That is why you have a 'secondary'. This is a second chance ( as the credit world sees it).

Like I said ...YES!!.. It sucks. Like I said I have been through it.

But...If you 'play'......you pay!!

Life does go on....Does life get easier?....NO!...But your credit will "look up" in about 7 years. ( at least from when the repo debt as paid in full).

[lwpat]

"We do have cash to put down"

Then look for a used car that an individual may be willing to finance for you. Probably still at a premium rate but better than secondary. Better still, make do for a little while longer and save some more cash and then pay for the car in full.

One benefit of bad credit is that it keeps you from getting further in debt.