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 aim is to assist you make smarter financial decisions by offering you interactive financial calculators and tools, publishing original and objective content, by enabling you to conduct research and review information for no cost – so that you can 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 Earn Money The offers that appear on this site come from companies that pay us. This compensation could affect how and when products are featured on the site, such as for instance, the order in which they may appear within the listing categories, except where prohibited by law. This applies to our loan products, such as mortgages and home equity and other products for home loans. However, this compensation will not influence the content we publish or the reviews you read on this site. We do not include the vast array of companies or financial offerings that could be available to you. SHARE Maskot/Getty Images
3 minutes read. Published on April 29, 2022.
Written by Rebecca Betterton Written by Auto Loans Reporter Rebecca Betterton is the auto loans reporter for Bankrate. She is a specialist in helping readers with the ins and outs of securely taking out loans to purchase a car. Written by Rhys Subitch Edited by Auto loans editor Rhys has been editing and writing for Bankrate since late 2021. They are committed to helping readers gain the confidence to manage their finances through providing clear, well-researched information that breaks down otherwise complex topics into manageable bites. The Bankrate promises
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If you have questions about money. Bankrate can help. Our experts have been helping you manage your money for over four years. We are constantly striving to give our customers the right guidance and the tools necessary to be successful throughout their financial journey. Bankrate adheres to a strict code of conduct , so you can trust that our content is honest and reliable. Our award-winning editors, reporters and editors create honest and accurate content that will help you make the right financial decisions. The content created by our editorial team is factual, objective and is not influenced by our advertisers. We’re open about how we are in a position to provide quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We receive compensation for the placement of sponsored products and services, or by you clicking on certain links posted on our site. So, this compensation can affect the way, location and in what order items appear within listing categories and categories, unless it is prohibited by law. We also offer mortgage home equity, mortgage and other home loan products. Other elements, such as our own rules for our website and whether the product is available in the area you reside in or is within your own personal credit score can also impact the way and place products are listed on this website. We strive to offer the most diverse selection of products, Bankrate does not include information about each financial or credit item or service. Paying your car loan late or not paying it at all has the same consequences, regardless of whether that payment is your first or your last. Failure to make the payments on your car could lead to repossession. There are alternatives to keep your car and avoid repossession even though it is the final payment. There are options if you cannot afford the final payment on your car you’re having difficulty to make your final loan payment you have several options to stay clear of negative effects on your credit in the long term and the associated costs. 1. Request a loan modification loan modification. Requesting a modification result in exactly what it sounds like: the modification of a loan. This is different from refinancing your loan. Loan modification is a process that is done in conjunction with your current lender to alter your terms. A typical modification may lead to lower rates of interest, or deferred payments. While this may be more challenging in the middle of the duration of your loan make contact with your lender immediately if you are able to. 2. Transfer your car to your vehicle you will have to contact several dealerships and see which ones have a more affordable car available. This process may be easier when you finance your car through a dealership and work with that dealership, but it’s possible even if you don’t. Do not settle for the first deal you are offered, shop around and know the value of your car when you ask for quotations. 3. Sell privately Although it will require more consideration, it can alleviate the stress of your vehicle and let you purchase a lower-cost alternative. It is particularly popular right in the present, and you’ll likely be able to get a decent price. But selling your vehicle will mean the need for a new car and, with a hot market, it may be challenging to find a car that meets your particular needs and budget. 4. Ask friends and family for assistance. Another option is to ask friends and family for help. Although this assistance doesn’t have necessarily be financial in nature, it could feel uncomfortable. Use this as a final effort to pay for vehicle repossession instead of your primary protection. Ask those around you whether they know anyone who is interested in purchasing or selling a less pricey vehicle, and then work from there. The possibility of refinancing your loan isn’t an option.
However, if you’re in the final stage of payment of your loan you are too far to refinance. The lenders have specific restrictions regarding refinancing things like age of the vehicle or mileage, as well as the 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, take some time to plan the next loan to ensure that you pay on time. Set aside money for your next car purchase. The best way to avoid future financial difficulties is to only financing a vehicle you can afford. Before signing off on your next auto loan determine how your monthly payments fit into your budget and also incorporating any major changes on you bank account. Install automatic payments. Not all lenders have the option of automatic payments however the majority of them offer this feature. And if you have consistent payments, it’s the best way to ensure that you pay your loan payments on time and in full. It is possible to get the rate discount that certain lenders provide when you enroll in autopay. Check for loan add-ons If you’re financing through a dealership be sure to read the fine print on your loan agreement to ensure that you don’t spend extra cash each month for . Look out for typical additional services like extended warranties as well as tire and wheel protection including rustproofing and GAP insurance. The bottom line Trying to make your final payment can result in you losing your car in the event that you don’t act quickly. There are options. Consider loan modification, selling your vehicle, selling it privately or contacting relatives and friends prior to accepting repossession of your vehicle. Keep up-to-date with the latest information options to ensure that you’re not in this precarious situation with your next set of wheels. Find out more
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This article is written by Auto Loans Reporter Rebecca Betterton is the auto loans reporter for Bankrate. She is a specialist in helping readers in navigating the details of taking out loans to buy an automobile. Written by Rhys Subitch Edited by Auto loans editor Rhys has been writing and editing for Bankrate since late 2021. They are dedicated to helping readers gain the confidence to control their finances through providing clear, well-researched facts that break down otherwise complex topics into manageable bites.
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