Life will sometimes throw curve balls, and you can’t help but think, if I can’t make my car payments, what are my options? There are multiple steps to take if you are no longer able to afford your monthly payment. Learn more from the experts at the Tom Gill Chevrolet finance center.
What to Do if You Can’t Make Your Car Payments
If you’re saying to yourself “what if I can’t make my car payments; what are my options”, depending on your situation, there are options if you are not able to make your payment:
- Speak With The Lender: Talk to your lender and be honest about your situation. They may be able to modify your loan for a period of time while you work out your finances.
- Refinance Your Loan: If you have been making regular payments and have a good credit score, ask about refinancing your car loan. This will lower your payments by extending your auto loan or lowering your interest rate. Check with your original lender to see if they offer to refinance. If not, you may have to go elsewhere.
- Sell Your Car: Depending on the amount you owe and the estimated value of your vehicle, you may be able to sell it and make enough to pay off your loan.
- Trade-In Your Vehicle: You might not get as much as you would from a private seller, but trading in your vehicle is another option. Use our online tool to estimate your trade-in value.
- Have Someone Assume Your Loan: This isn’t an option with all lenders, but some allow for a third party to take over loan payments for you. If you have a low-interest loan, you might find a potential buyer who would be willing to do this.
- Repossession: If you let your vehicle gets repossessed, it will negatively impact your credit score. This is not an ideal solution. You can get charged the cost of repossessing and selling the vehicle on top of your loan balance.
- Bankruptcy: In some cases, bankruptcy can wipe out the balance of repossession, or stop your car from being repossessed completely.
Get Financial Advice at Tom Gill Chevrolet
If you need more advice or help with your auto loan, get in touch with the finance center at Tom Gill Chevrolet. Our expert financial advisors will walk you through your options and provide recommendations to fit your situation.