Lower Car Loan Payment Options–Is Refinancing The Only Option For Car Owners Struggling With Payments?

Typically, when car owners have sought to lower their car loan payment they had to turn to refinancing in the hopes of getting a lower interest rate or extending their loan terms. While this has been a popular method which car owners have used to obtain a more affordable car loan payment, some consumers have attempted to take alternative routes to getting a more affordable monthly car payment.

Car owners can choose a bank loan or a dealer loan when it comes time to find financing for their automobile purchase. However, no matter which route the car owner takes, if lower payments are to be negotiated or a lower interest rate is to be sought out, obviously, the car owner will have to deal with their lender in most cases.

Some individuals may attempt to pay off their car through other means, like a consolidation loan or through funds they get from other sources, like refinancing their mortgage. However, car owners who are struggling to make their payments may have, in recent months, been unable to used these methods for erasing their car loan debt.

While, again, lower car payments have been obtained through refinancing, some car owners may not be in a financial position which will allow them to benefit from refinancing. Yet, there have been opportunities in the past where some individuals have been able to extend the terms on their auto loan, which will allow for lower monthly payments in some cases. However, many financial advisers often warn against taking this route as it can cause overall costs to increase.

However, there may be opportunities for forbearance or a temporary reduction in a car payment obligation, but these may require a good-faith payment upfront, which might equate to more than a minimum monthly payment. Car owners who may have an excellent credit score will obviously have more opportunities when it comes to finding lower car loan payments from month to month, but individuals who may have a poor credit score have usually benefited from contacting their lender early so that a solution can quickly be found before the consumer loses their car.