Unaffordable Car Loan? Here's What to Do in Copetown

Unaffordable Car Loan? Here's What to Do in Copetown

Posted on March 18, 2021

New car prices are higher than ever before and that can cause problems if circumstances change. If you’re in a position where you think you’re going to run into trouble with your car payments, you may want to look into auto loan debt relief.

Auto loan debt relief is a rather dry term for getting out from under an unaffordable car loan. If you find yourself in this situation, you have a few options open to you.

Auto loan debt relief in Copetown

How you approach the situation depends on what’s happening. If you’re in a position where you need temporary help, like illness or COVID, there are a couple of options you can take. If it’s something longer term like enforced unemployment, you have options too.

Here are just a few of them.

Work with your auto loan company

Despite that you may think, the vast majority of auto loan companies want you to succeed. They make the most money out of completed car loans so it’s in their interest to make sure you can finish it. An unaffordable car loan can cause stressful and time consuming situations for everyone involved!

Taking the initiative and discussing the situation with your lender is a good first move. They may have specific hardship programs or tools at their disposal to help.

Tools such as deferments, payment holidays, loan extensions or other tools can also help you stay afloat when things get tough.

Consider auto loan refinancing

If you’re a couple of years into your car loan and the situation has changed, you may be able to refinance the loan. Depending on how much your car is worth and how much you have paid off, you could apply for a cheaper loan. This could be enough to see you through.

Refinancing is particularly useful if you’re struggling to pay off a bad credit car loan. If a couple of years of payments has increased your credit score enough to qualify for standard borrowing at a lower rate, this could make all the difference.

Transfer the Copetown auto loan

While not very common, you can transfer the auto loan to someone else. You would need to find a willing participant with a good credit score but it is entirely possible if you really need to.

You’ll have to discuss it with your lender and have their agreement but you can pass on your car loan to someone else to pay. This could be enough to get you out of debt without getting you into more trouble.

Sell the car

Selling the car is a method of last resort but if all else fails, it’s better than defaulting on a payment. It’s easier if it’s a second car or premium car but any car can be sold.

This can present problems getting to work or getting around but if it’s a short term situation, there’s always a way around such challenges. Even buying a cheap car for a year or so could be enough to get you through.

Whatever you end up doing, make sure to take control and take initiative!

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

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