What If I Can't Make My Car Payments?

Having car payments is a significant responsibility, and no one ever wants to be in a tough spot where they can’t make their car payment. Unfortunately, things happen in life, and there may come a time when you want to know what to do if you can’t make car payments. As your trusted source near Spokane Valley for your financing and leasing needs, there are steps to take if you’re in a tough financial situation and unable to make your auto loan payments. We have all of your details below! Feel free to contact us if you have any questions.

Can’t Make My Car Payments: What Are My Options?

The answer varies based on your situation, but you have options to take, especially if you have an excellent payment history as a loanee. Try these options first:

• Talk to your lender and let them know your situation. They can try and modify your loan for a short period as you work through your finances.
• If you’ve been on-time payments consistently and have a great credit score, consider refinancing your loan. This often lowers your payments by extending your loan or lowering your interest rate. Contact your lender about offers to refinance your car loan, or you can check with other lenders.
• Have someone assume your loan. You won’t see this option with every lender, but you can see if a third party can take over your loan payments. A lower-interest auto loan helps find a potential buyer willing to do this. 

Do I Have Any Other Options?

If the above won’t work or is not offered, you can consider the following steps:

• Sell Your Car: Depending on your balance and what your car is worth, you can sell your vehicle and pay off your loan.
• Trade-In Your Vehicle: You may not get as much as you can with a private seller, but trading in your car is another option Tri-Cities drivers can take to lower their payments. Estimate your vehicle’s value using our value your trade tool. 

If none of the above works, then you have to decide between the following options:

• Repossession: Having your vehicle repossessed negatively affects your credit score, which is why it’s not ideal. You can also get charged the repossession and selling the vehicle charges in addition to your loan balance.
• Bankruptcy: Sometimes, bankruptcy wipes out the repossession balance or stops your can from being repossessed. 

Get Additional Financial Advice at Camp Chevrolet Today!

If you won’t know what to do about your monthly payments and need additional advice, we can help! Our finance experts at our Spokane Chevrolet dealership can help with your auto loan and explore the options that best fit your situation.