It's not uncommon to miss a car payment, but it could turn a bit more complicated during the Coronavirus outbreak. Learn how to manage your car payment through the crisis.
Although it's not ideal, falling behind bills -including car payments- may happen, especially during a pandemic. Many people have been laid off or suffered a wage cut due to the Coronavirus outbreak, and this could mean they'll have to struggle to pay them.
If you think you are going to have some trouble managing your car payment or already have missed one, then you should check the options you have!
1. Check your budget
Before you start analyzing your options, you should check your budget and verify if it's possible to continue making your car payment and for how long.
Take into account the COVID-19 factor and that it will take you some time to normalize your personal finances, so write down how much money you have, which is your income, your expenses and the expenditures you can cut.
Then you will see how long can you manage your car payments and when to start looking for options.
2. Get in touch with your auto loan servicer
Once you've analyzed your budget and no longer can manage your car payment, it's time to turn to the lender or servicer that owns your auto loan.
Explain to them how your economy has been impacted by the Coronavirus outbreak. If you have proof of your situation, like a termination letter from your employer, then you should offer it to them. This way they can evaluate your case thoroughly.
Your lender could offer some options, which include: a skipping payment program (skip your payment for one month), a car payment forbearance (put off payments for more than a month) or auto loan refinancing (refinancing, reduce your loan's interest rate).
3. Extreme options
There's a good chance that auto loan servicers will provide you a car payment relief, but if this does not happen you should learn about other options.
- Sell your car
- Give the car back to the lender.
- Sell other objects (books, electronics) that could help you get some money to make your car payment.