What If I Can’t Make My Car Payments?

March 5th, 2019 by

Car PaymentNo one wants to be in this situation, but sometimes life throws you curveballs where you find yourself thinking, “I can’t make my car payments – what are my options?” There are steps you can take if you can no longer afford your monthly payment. Learn more from the experts at the Patty Peck Honda finance center.

What to Do if You Can’t Make Your Car Payments

Depending on your situation, there are several options if you can’t make your car payments:

  • Speak With The Lender: Talk to your lender and let them know 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 consistent payments and have a good credit score, you might be able to refinance your auto loan. This can lower payments by either extending your auto loan or lowering your interest rate. Check with your original lender to see if they offer refinancing. 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 your vehicle and make enough to pay off your loan.
  • Trade In Your Vehicle: While you may not get as much as you would from a private seller, trading in your vehicle is another way drivers in Brandon lower their payments. 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: Letting your vehicle be repossessed will negatively impact your credit score so this isn’t an ideal solution. You also may end up being 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 a repossession, or stop your can from being repossessed completely.

Find Financial Advice at Patty Peck Honda

If you need additional advice or help with your auto loan, contact the finance center at Patty Peck Honda near Madison. Our financial specialists will walk you through your options, including providing advice on how to trade in a financed car, and make recommendations to fit your situation.

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