What If I Can’t Make My Car Payments?

Finance Paperwork with Glasses

 

Life can throw us curveballs, which may leave us struggling to pay bills at one point or another. Are you in this situation and asking yourself: “What if I can’t make my car payment?” While this is not an ideal situation, you do have options to consider in the Port Huron area. Find out what to do if you can’t make car payments with the Moran Blue Water Chrysler Dodge Jeep Ram finance team.

What to Do If You Can’t Make Your Car Payments

Get a sense of what to do if you can’t make your car payments from the options below.

  • Consult your lender. Your lender should be your first point of contact. They might be able to modify your loan until you work out your finances.
  • Refinance your loan: Another option is to refinance your car loan, especially if you have historically made payments on time and are in good credit standing. Refinancing may lower your monthly payments or interest rate.
  • Sell your car. If your financial situation is dire enough, you may need to consider selling your car, which will allow you to pay off the remainder of your loan. 
  • Find someone to assume your loan. Not all lenders permit this, but some do allow for a third party to assume your loan payments. 
  • Allow your vehicle to be repossessed. This is by no means an ideal solution, as it will negatively impact your credit score. You may also be strapped with the cost of repossession and selling the vehicle on top of your loan balance.
  • File for bankruptcy. This also isn’t an optimal situation, but bankruptcy may wipe out the balance of a repossession or halt repossession entirely.

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

“I can’t make my car payments — what are my options?” In addition to the solutions listed above, your best strategy actually takes place prior to encountering this situation. A few things to consider when financing a new or used vehicle include:

  • Maintain an emergency fund with at least 3 to 6 months’ worth of expenses.
  • Buy the right car for your needs.
  • Factor in extra costs of car ownership.
  • Stay within your budget, rather than pushing it to its max.

Seek Financial Guidance at Moran Blue Water Chrysler Dodge Jeep Ram

Moran Blue Water Chrysler Dodge Jeep Ram is here to guide you through any financial situation you may encounter in the Saint Clair area. Get in touch with any questions, and our finance team can guide you through your options and make recommendations specific to your situation.

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