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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Making your car payment late or skipping it altogether has the same consequences, regardless of whether that car payment is your first or your very last. Not being able to make your vehicle payments can mean repossession. But there are options to hold onto your vehicle and avoid repossession even if it is the final payment. Options if you can t afford your final car payment
If you have found yourself struggling to make your final car loan payment you have a few options to avoid long-term credit impacts and the associated costs. 1 Request loan modification
Requesting a results in exactly what it sounds like, a modified loan. This is different from the process of refinancing your loan. Loan modification is a process done directly with your existing lender in order to change your terms. A typical modification could result in lower interest rates or deferred payments. While this may be more of a challenge far into your loan, reach out to your lender as soon as you can. 2 Trade in your car
To your vehicle you will have to reach out to several dealerships and see if they have a more affordable vehicle available. This process may be easier if you financed your vehicle through a dealership and work with said dealership, but it is still possible if not. But don’t settle for the first offer you get, shop around and know the value of your vehicle when you request quotes. 3 Sell privately
While does take some extra consideration, it can alleviate the stress of your current car and allow you to get a more affordable option. The is especially strong right now so you will likely get a good price. But selling your vehicle will mean the need for a new car and, with a hot market, it may be challenging to find a vehicle for your specific needs and budget. 4 Ask friends and family for help
The final option is to reach out to friends and family for help. While this help doesn’t need to be financial, it can feel uncomfortable. Use this as a final effort to afford vehicle repossession rather than your first line of defense. Ask those around you if they know anyone interested in purchasing or selling a less pricey vehicle, and work from there. Car Outline Refinancing your loan isn’t an option Unfortunately, if you are at the final payment stage of your loan you are too far to refinance. Lenders hold specific constraints in terms of refinancing on aspects such as vehicle age, 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, take some time to prepare for your next loan to ensure on-time payments. Budget for your next vehicle purchase
The key to avoiding future financial hardships comes down to only financing a vehicle you can afford. Before signing off on your next auto loan, how the monthly payments fit into your budget — while also factoring in any catastrophic changes to your bank account. Set up automatic payments
Not all lenders offer an automatic payment option, but most do. And if you have consistent pay, it is a great way to ensure you make your loan payments on time and in full. You may even benefit from a rate discount, which some lenders offer when you sign up for autopay. Check for loan add-ons
If you’re financing through a dealership, read the fine print on your loan agreement and be sure that you aren’t spending extra money each month on . Look out for typical add-ons like extended warranties, tire and wheel protection, rustproofing and GAP insurance. The bottom line
Struggling to make your final car payment can leave you without your vehicle if you don’t act fast. But there are options. Consider loan modification, trading in your car, selling privately or reaching out to friends and family before accepting vehicle repossession. Stay up to date on available to ensure you aren’t in this precarious situation with your next set of wheels. Learn more SHARE: Rhys has been editing and writing for Bankrate since late 2021. They are passionate about helping readers gain the confidence to take control of their finances by providing clear, well-researched information that breaks down otherwise complex topics into manageable bites. Related Articles