What If I Can’t Make My Car Payment?
When you’re faced with a financial emergency, you may be left wondering what to do if you can’t make car payments. It is an unideal situation to be in, but the good news is that most St. Louis drivers have several options to consider so they can avoid repossession and prevent their credit from taking a major hit. If you are asking yourself, “what if I can’t make my car payment?” you can learn more about the next steps to take with Green Light Auto Credit.
What to Do if You Can’t Make Your Car Payment
- Speak With Your Lender: It may be unpleasant to approach your lender with the question, “I can’t make my car payments, what are my options?” but it’s a necessary first step to take. Prepare yourself to have an honest conversation about what’s going on that is causing you to have trouble with your payments; many lenders would rather work toward a solution with you than have to go through the process of repossessing your car.
- Consider Refinancing: Herculaneum drivers who are reliable borrowers with a good credit score and consistent payment history may be able to refinance their car loan. Doing so can get you a lower payment by extending your loan term or, most often, securing a lower interest rate. Ask your lender if refinancing with them is an option. If not, you can look elsewhere.
- Sell the Vehicle: Depending on the amount you owe on your vehicle, you may be able to sell it and make enough to pay off your loan in its entirety.
- Make a Trade-In: A private sale of your vehicle might not bring in the amount you were hoping for, but trading it in at a Florissant-area dealership could get you there. Keep in mind, if you’re upside down on your previous loan you will still owe the difference between the loan balance and the trade-in value.
- Find Someone to Assume the Loan: Some lenders will allow a third party to assume your loan payments moving forward. With a low-interest loan, you may be successful in finding a buyer who would be open to this.
Know the Risks of Repossession
Some drivers who are asking, “I can’t make my car payments, what are my options?” will consider having their car repossessed. With the above options available as alternative solutions, repossession likely isn’t your best course of action. Your credit score will take a hit, and you could take on additional charges associated with the cost of repossessing your vehicle. If you’ve run out of other options, however, filing for bankruptcy could wipe out the balance of repossession or even prevent the repossession entirely.
Reach Out to Green Light Auto Credit for More Information
