Like homeowners, many car owners are having difficulty making their car loan payments and, as a result, are looking for ways which will allow them to lower their car loan payment from month-to-month. While no federal assistance program is offered to modify car loans, there are some car owners who have been speaking with their lender to find affordable car payment solutions.
There are cases where an interest rate on a car loan is causing monthly payments to be much higher than a car owner can handle at the present time. There have been reports that some car owners have negotiated with their lender and gotten a lower interest rate so that they can continue to make payments on their automobile. Understandably, not all car loan lenders will be willing to lower interest rates for car owners, but for those who have a good credit history and an excellent payment record, this may be an option.
Yet, some individuals who fear they may lose their car have talked to their lender and asked about extending their car loan terms. Extending the repayment timeframe has been used on everything from mortgages to credit card repayments, but it needs to be understood that this can be more costly over the long run. Understandably, a lower payment for a car loan from month to month thanks to an extension of the repayment lifetime will allow interest to build and can cost more when all is said and done.
However, individuals who are concerned about losing their car may be willing to meet these added costs due to interest as long as they can continue to make their monthly payments. As with certain types of mortgages, longer repayment terms can cause expenses to rise on loans, but again, it comes down to if a car owner must meet these added costs or lose their car, many will be willing to pay more overall.
When it comes to difficulties making a car payment, a car owner is simply advised to first talk with their lender about options which can make their automobile payments more affordable. While each car owner’s situation is different, there may be more solutions, like forbearance plans, for individuals who are presently having a difficult financial time. There is no guarantee that assistance will be given for those who are having trouble making their car loan, but financial counselors often say that there is no harm in talking with a car loan lender if a car owner possibly faces repossession.