Unable to pay for your car, now what?
Times are tough. Individuals are struggling to afford groceries, Are you worried that you won’t be able to make your next car payment because you’ve lost your job because of the Coronavirus? Perhaps you are already behind on your payments. Here is what you can do!
Contact your lender
Some banks, credit unions, and auto financing companies are allowing delayed payments or renegotiate their payment schedules. If your lender agrees to any changes, make sure you have them in writing for later.
Refinance your loan
Contact your lender to see if you can lower your monthly payments. Ask if you can have a lower interest rate or extend the loan.
Learn your rights
Check out more information on re-possession and your rights here.
Make sure you don’t wait to reach out to let the lender. Let them know your situation NOW before things escalate. If you get too far behind on your payments, your lender could repossess your car, sometimes without warning. Many creditors will be willing to work with you to help you successfully pay for your vehicle. They don’t want to see you default on your loan or face repossession as they will lose a customer, it’s expensive, and it takes a lot of everyone’s time.
Check out special programs
The majority of banks, credit unions, and other lenders within the automotive industry have announced programs to both help current borrowers and give new borrowers peace of mind. Nearly every automaker’s financier has announced first payment deferrals of between 90 and 120 days to buyers of new vehicles. A growing list of carmakers will extend leases up to six months and are offering deferred lease payment programs. It’s important to check with your leasing company to determine if the contract’s mileage cap will be lifted.
Just know that not all borrowers will qualify for forbearance on their current loan or a deferment on a new loan. Lenders will look at your credit score, assets, and other factors when deciding whether to extend the offers. Different lenders have varying credit requirements for extending payment relief and are flooded with requests.
I deferred April's payment. May is now due.