Short answer: Yes, it's often possible, but usually with a specialist lender at first, and it depends on how long ago it happened and whether any shortfall has been paid. Lenders focus on the missed payments, any default and what you still owe, and on whether your finances are now stable.
What a repossession leaves on your record
There isn't usually a single "repossession" entry. What lenders see is the history around it:
- Missed payments in your repayment history, which stay for two years
- A default, if one was listed, which stays for five years even after it is paid
- A shortfall debt: If the car sold for less than you owed plus costs, you remain liable for the difference. If it is unpaid, it may be listed as a default or passed to a collector
- Court judgments, if the lender took legal action for the shortfall
Application forms and brokers will also ask directly about past repossessions. Be honest, because lenders often find out anyway.
How lenders tend to view it
| Situation | Typical view |
|---|---|
| Recent repossession, shortfall unpaid | Very limited options. Most lenders will want the shortfall dealt with first |
| Shortfall paid or on an arrangement being kept | Specialist lenders may consider it, often with a deposit or a lower loan amount |
| Two or more years ago, clean conduct since | More lenders will look at it, especially with stable income |
| Default now more than five years old | The listing has dropped off. Assessment is based on current finances |
Steps that help
- Get your credit reports and confirm what is listed, the amounts and the dates. Errors can be corrected for free.
- Sort out the shortfall. Ask the former lender for a written balance. Pay it or agree a payment plan, and keep written confirmation.
- Build a clean run. Three to six months of bank statements with no dishonours, and bills and rent paid on time, carry real weight.
- Explain what changed. Job loss, illness or separation that has since stabilised is easier to assess than an unexplained history.
- Borrow modestly. A reliable, lower-cost car and a deposit if you can manage one reduce the lender's risk and your own.
Know your rights next time
Under the National Credit Code, a lender must usually give you a default notice with at least 30 days to catch up before repossessing. If you are struggling again, ask for hardship help early. Hardship arrangements don't affect your credit score. Moneysmart covers what lenders can and can't do. Specialist loans cost more, so compare the comparison rate and total repayable, and plan to refinance once your record improves.
Had a car repossessed in the past? Tell us about your situation in about 60 seconds and a licensed broker will call you. No credit check to enquire.
Related guides
- Car repossessed: what happens next?
- Dealing with arrears before reapplying
- Subprime car loans: risks and benefits
General information only. This isn't financial advice. Finance the Ride is a referral service and doesn't hold an Australian Credit Licence. Last reviewed September 2026.
