What to do if you can’t make your final car loan payment Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our goal is to help you make better financial decisions by providing you with interactive financial calculators and tools, publishing original and objective content, by enabling you to conduct your own research and compare data for free to help you make informed financial decisions. Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make money The products that are advertised on this website are provided by companies that pay us. This compensation could affect how and where products appear on this website, for example such things as the sequence in which they be listed within the categories of listing in the event that they are not permitted by law. Our loan products, such as mortgages and home equity, and other home lending products. But this compensation does affect the information we publish, or the reviews that you read on this site. We do not cover the vast array of companies or financial offers that may be open to you. SHARE: Maskot/Getty Images
3 min read published April 29, 2022
Written by Rebecca Betterton Written by Auto Loans Reporter Rebecca Betterton is the auto loans reporter for Bankrate. She specializes in helping readers in navigating the ways and pitfalls of taking out loans to purchase cars. The article was edited by Rhys Subitch Edited by Auto loans editor Rhys has been writing and editing for Bankrate from late 2021. They are dedicated to helping readers gain confidence to control their finances with concise, well-researched and researched information that breaks down complicated topics into bite-sized pieces. The Bankrate promise
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At Bankrate we are committed to helping you make better financial choices. While we adhere to strict journalistic integrity ,
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They ensure that what we write ensures that everything we publish is accurate, objective and trustworthy. Our loans reporter and editor focus on the points consumers care about the most — the various types of loans available and the most competitive rates, the best lenders, how to pay off debt and many more. So you can feel confident when investing your money. Integrity of the editing
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You have money questions. Bankrate has answers. Our experts have helped you understand your money for more than four decades. We are constantly striving to give our customers the right guidance and the tools necessary to make it through life’s financial journey. Bankrate adheres to strict standards , so you can trust that our content is truthful and reliable. Our award-winning editors and journalists produce honest and reliable information to assist you in making the best financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are capable of bringing high-quality content, competitive rates, and useful tools to you by explaining how we earn money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and services or through you clicking specific links on our site. This compensation could impact how, where and when products appear within listing categories and categories, unless it is prohibited by law. We also offer mortgage home equity, mortgage and other home lending products. Other elements, such as our own rules for our website and whether a product is available in your area or at your self-selected credit score range could also affect the manner in which products are featured on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Making your car payment late or skipping it altogether has the same consequences, regardless of whether the payment is your first or your very last. Inability to pay your vehicle payments can mean repossession. But there are options to secure your car and avoid repossession, even if it’s your final payment. Options if you can’t afford your final car payment If you have found yourself struggling to make your final loan payment, you have a few options to avoid future credit-related consequences and the costs associated with it. 1. Request a loan modification loan modification. This will result in exactly what it implies, the modification of a loan. This differs from the process of refinancing your loan. Modifications to loans are carried out directly with your current lender in order to change your terms. A typical modification can result in lower interest rates or delayed payments. Although this could be more challenging far into your loan contact your lender immediately if you can. 2. Exchange your car for your vehicle , you’ll have to contact different dealerships to determine which ones have a more affordable vehicle available. This may be simpler in the event that you have financed your vehicle through a dealership and have a relationship with the dealership, however it’s still possible to do it isn’t. Do not settle for the first quote you receive look around and determine the value of your vehicle when you ask for quotes. 3. Sell privately Although it will require some extra consideration this can help ease the strain of your current car and allow you to purchase a lower-cost alternative. This is particularly prevalent this moment, so you are likely to receive a fair price. However, selling your car will result in the need for a new car and in a market that is booming, it may be challenging to find a suitable vehicle that fits your requirements and budget. 4. Request help from family and friends. assistance. Another option is to reach out to your family and friends for assistance. While this help doesn’t need to come from a financial source, it might make you feel uncomfortable. Use this as a final effort to afford vehicle repossession instead of your primary option. Ask around whether they know anyone who is looking to purchase or sell a less pricey vehicle, and then work from there. The possibility of refinancing your loan isn’t an option
However, if you’re at the final payment stage of your loan you’re too late to refinance. The lenders have specific restrictions regarding refinancing aspects such as vehicle age, mileage and loan amount. [/su_editorial-insight How to avoid car loan payment issues in the future Not making your final car payment can be discouraging, but one financial misstep does not need to result in a lifetime of headaches. Instead, you should take the time to plan the future loan to ensure timely payments. Set aside money for your next car purchase. The best way to avoid future financial hardships comes down to financing only a car that you are able to afford. Before you sign off on the next auto loan determine how your monthly payments are incorporated into your budget as well as incorporating any catastrophic adjustments to the balance of your bank account. Install automatic payments. Not all lenders have an automatic payment option however the majority of them do. And if you have consistent payment, it’s the best way to ensure that you are able to make your loan payments on time and fully. It is possible to get discounts on rates, which certain lenders provide when you enroll in autopay. Look for loan additional fees if you’re financing with a dealer be sure to read the fine print of the loan agreement and be sure that you aren’t spending extra money each month on . Check for common add-ons like extended warranties for tires and wheels, tire and wheel security, rustproofing and GAP insurance. The bottom line: Trying to pay your final car payment can leave you without your vehicle If you don’t take action quickly. There are options. Think about loan modification, trading in your vehicle, selling it privately or reaching out to your family and friends before committing to repossession of your vehicle. Keep up-to-date with the latest information the latest information to make sure you don’t end up in this precarious situation with your next set of wheels. Learn more
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Written by Auto Loans Reporter Rebecca Betterton is the auto loans reporter for Bankrate. She specializes in assisting readers with the ways and pitfalls of borrowing money to buy cars. The article was edited by Rhys Subitch Edited by Auto loans editor Rhys has been writing and editing for Bankrate since the end of 2021. They are dedicated to helping readers gain confidence to manage their finances by providing concise, well-studied information that breaks down otherwise complicated topics into digestible pieces.
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