Our lives are uncertain and so are our bad times and good times. You can never say when you have to face an economic downfall. This will directly affect your loans and payments. Failing to make your car loan payments are one of such issues that you may face in this situation. Whatever your financial circumstances are, if you don’t have the money to pay for your car loans, you should address it to your lender. They’ll help you to make a budget that you can afford as a monthly payment.
There are measures than you can take to meet your monthly payments amidst the financial disaster. Lenders don’t want to take away your vehicle because it involves lots of complicated processes and money. Instead, they can make short and long term plans for you that’ll help you to stay right on your current payments and will be beneficial for them too.
Let us show you how you can plan car loan payments:
This is a convenient option where you can take another loan to repay your current car loan. If your credit score is good until now then you may get the loan on a lower interest rate. For instance, if you have 48 months left on your loan, you may refinance over 72 months. This may increase the interest rate, but if you calculate properly then you can end up with lower payments.
Co-operating with your lender:
What you can do best to avoid being late for payments is to talk to your lender about your situation. Address the issue that you are having and find a solution while talking to him. Calculate when your next payment is due and if there is anything that you can afford to do. Some lenders may allow you to skip one or two payments for some charges. This may add some more amount to your principal loan amount. However, it will buy you some time to go for a long-term plan.
Selling off your vehicle:
If you know that your financial condition is not going to improve any soon, then it is better for you to sell the car. You may get 15% to 25% more than the trade-in value. In this way, you can have enough money to pay for the loan. If your situation looks a bit good and temporarily bad to you, then you may refinance and keep your vehicle.
Car loan transfer:
This is one of the best options that you can take. If your car is in good condition and if you can find a buyer then you can transfer the car ownership and the loan amount to the buyer. Contact your lender or the person that you have borrowed from, to get contacts who are interested to buy the car. After changing the registration, you’ll be free from the loan amount.
Proper and meticulous planning can help you to get throw your financial crisis. However, you may still find yourself in a tricky situation in spite of opting for all the measures. We hope that a little luck and following these tips will save you for the day.