Struggling To Pay A Car Loan In Bronte?

Struggling To Pay A Car Loan In Bronte?

Posted on June 11, 2021

Auto loans are a part of everyone’s lives. Canada is so vast and so spread out that a car is essential unless you live in the city. But what happens when circumstances change and suddenly you're now struggling to pay a car loan?

Our Bronte auto loan team explains your options.

Life happens. Things change and we have to adapt and overcome. Sometimes those changes are out of our control and can lead to unforeseen circumstances.

Circumstances that can make a once comfortable Bronte auto loan into something else entirely.

So, what are your options?

Talk to your lender

If you’re really struggling to pay a car loan, and are in genuine danger of defaulting on your loan, speak to your lender before it happens. Discuss your situation and work something out with them.

Make sure to do it before you miss a payment. Do it before and you’re a responsible customer trying to do the right thing. Do it after and you’re a defaulter who isn’t managing their finances properly.

Lenders view the two very differently!

Take a payment holiday

If your situation isn’t quite so dire but you’re struggling, you could ask for a payment holiday. This would work best for those in temporary situations like being laid off for 3 months until work picks up or needing a couple of months’ breathing room to get back on your feet.

Most lenders operate some kind of payment holiday scheme where you can take 3-6 months off loan payments. Those payments will be added to the end of the loan and you will still be charged interest but it might be enough.

Refinance the auto loan

If you have paid off a year or two of the loan, have good credit and still have your income, you could refinance your current auto loan for a cheaper one. You could use the equity you have built up to reduce the amount you borrow or borrow over a longer term.

Either way, your monthly payments should be lower.

Lump sum loan settlement

If the monthly payment is causing difficulties but you have savings, you could just pay off the loan. This isn’t the ideal option as it could wipe out your savings but it would also free up an amount each month for you to rebuild those savings.

Sell the car

Another less than ideal option but an option nonetheless. You could sell the car, pay off the loan and use any money left over to buy a cheaper car. This would all depend on the car you sell, the loan you have, the amount you have left to pay and how much you would have left over of course, but is an option.

Less than ideal of course, but far better than defaulting on the loan!

Whatever your situation, if you need help finding a more affordable auto loan, we can help.

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

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