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 goal is to help you make smarter financial decisions by providing you with interactive financial calculators and tools as well as publishing high-quality and impartial content, by enabling you to conduct your own research and compare information for free – so that you can make sound financial decisions. Bankrate has agreements with issuers, including but not limited to American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money The offers that appear on this website are provided by companies who pay us. This compensation can affect the way and when products are featured on the site, such as, for example, the order in which they may appear in the listing categories in the event that they are not permitted by law. Our mortgage, home equity, and other home lending products. However, this compensation will have no impact on the information we publish, or the reviews that you see on this site. We do not contain the universe of companies or financial offerings that could be accessible to you. Share: Maskot/Getty Images
3 min read Published 29 April 2022
Writer: Rebecca Betterton Written by Auto Loans Reporter Rebecca Betterton is the auto loans reporter for Bankrate. She specializes in assisting readers in navigating the details of taking out loans to purchase an automobile. Edited by Rhys Subitch Edited by Auto loans editor Rhys has been editing and writing for Bankrate since the end of 2021. They are committed to helping readers gain confidence to manage their finances through providing precise, well-studied facts that break down complex topics into manageable bites. The Bankrate guarantee
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However, if you’re nearing the end of the payment phase of your loan you’re not able to refinance. The lenders have specific restrictions when refinancing based on aspects such as vehicle age as well as mileage and 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, spend some time to prepare for the future loan to ensure timely payments. Set aside money for your next car purchase. The most effective way to avoid the possibility of financial problems in the future comes down to only financing a vehicle you can afford. Before you sign off on the next auto loan, how the monthly payments are incorporated into your budget — as well as incorporating any catastrophic adjustments on you bank account. Automate payments. Not all lenders provide the option of making payments automatically, but most do. If you are able to maintain a consistent pay, it is the best way to ensure that you are able to make your loan payments punctually and in full. You may even benefit from a rate discount, which some lenders offer when you enroll in autopay. Be sure to look for loan additions if you’re financing through a dealership, read the fine print of the loan agreement to ensure that you don’t spend extra cash each month for . Look out for typical additional services like extended warranties, tire and wheel protection, rustproofing and GAP insurance. The bottom line: Trying to pay your final car payment could mean you’re without your vehicle if you don’t act fast. There are options. Consider loan modification, trading in 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. Learn more
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The article was written by Auto Loans Reporter Rebecca Betterton is the auto loans reporter for Bankrate. She has a specialization in helping readers to navigate the details of borrowing money to buy cars. The article was edited by Rhys Subitch Edited by Auto loans editor Rhys has been writing and editing for Bankrate since the end of 2021. They are passionate about helping readers gain confidence to control their finances by providing concise, well-studied facts that break down complicated topics into digestible pieces.
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