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How To Extend A Car Loan In Caledonia

How To Extend A Car Loan In Caledonia

The majority of loans are for a fixed period of time. One of the benefits of such loans is that they are a predictable amount each month over a known time period. If that isn’t working for you, can you extend a car loan in Caledonia?

 

This is a question asked of our Caledonia auto loan team yesterday. We have heard this one before so thought it would make a good topic for a blog post.

 

If you’re struggling to make payments or think you may miss a payment soon, the time to take action is now. Extending your auto loan is only one of a few actions you can take.

 

Can You Extend A Car Loan In Caledonia?

 

You can extend an auto loan if you need to but only if your lender agrees. It may not be the best option though.

 

A typical auto loan contract will be for a fixed amount with a fixed monthly payment over a fixed term. Some loans have the ability for overpayments but typically not for being extended.

 

Nothing is impossible though.

 

Lenders would rather be flexible and work with you than risk you defaulting and losing them money.

 

Not all lenders will agree to an extension if it isn’t COVID-related. It is entirely up to the lender and not something we can predict.

 

It may not be your best option anyway.

 

Other Auto Loan Options

 

There are a few other alternatives to extending your auto loan that might make better financial sense.

 

They include:

 

Taking a payment holiday – While all lenders were told to offer payment holidays during the pandemic, most lenders offered the facility anyway. If you think your situation is temporary or just need to take a breath, this could be all you need. Just remember, interest still accrues even during the holiday!

 

Refinance the auto loan – Depending on how far in you are, you could refinance your current loan with a cheaper one. If you have paid off some of the existing loan, you could apply for a cheaper one with lower monthly payments.

 

Transfer the loan – While less common, you can transfer your loan to someone else if you need to. If you can find someone to take it on and they would qualify for that loan, you could sign it over to them to complete the payments.

 

Sell the car – This isn’t something that is always possible but is an option. If you have another car or could sell the car and get a cheaper one, that could solve your problem. As long as you could pay the loan off and have enough left over to buy something else, this could work.

 

Managing Caledonia Auto Loans

 

Whatever you decide to do, make sure to do it before you miss a payment. Lenders will be far more amenable if you approach them before you miss a payment. Other lenders will also be more willing to work with you if you have a spotless payment history.

 

There are always options and always a way to get out of situations. Sometimes you just need a little help.

 

Contact Unique Chrysler for help, advice and competitive car finance.

 

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Categories: Auto Loan

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