Who Else is Struggling
with their Car Payments?
 These
are spooky times. The economy has affected us all. Especially if you
have lost your job or, had your hours cut back. If for one reason
or another you can’t make any or all of your car payment you can get
more help than you might think. Some people think because of the nasty
phone calls and threatening letters that the lender want your car. The
lenders are aware of the state of the economy and the last thing they
want is another car that invariably will lose them money.
Most lenders are prepared to help you if they think
you can make a lower payment if they can adjust the contract or give you
a little time.
This is no time to go into hiding or park the car
on the next street over to avoid repossession. Repossession will occur
if you are past due. The law is on the lender's side.
If you can’t make your payment you must make up
your mind what you want to happen. You can’t not pay and keep the car.
Put together your honest facts and make the phone
call and try to work something out. If your income has been reduced and
you can make a lower payment, present this to the lender. They often
will rewrite the contract for a longer time and lower you payments.
Trust me, they don’t want your car back. It
represents a loss to them so you can see it is in their best interest to
help you.
If they rewrite the contract they will set you up
30 days before you have to make the first payment. One other alternative
is a payment extension. If your problem is temporary and you don’t want
add the extra interest to you contract, you could possibly get one or
maybe two payments extended to the end of the contract. This usually
entails a small fee for each extension.
If this doesn't work for you, take the car to a
used car dealer that finances his own contracts. See if you can trade
down. Also, let all of your friends and co-workers know your car is for
sale or they might take up the payments on the existing contract. If you
find someone with good credit and a job, they might be able to just take
up your payments and not pay anything down.
The thing is, use your head. Don’t flirt with
disaster. If you see that you are going to lose the car, use it to shop
“tote-the-note” used car lots and make a deal to get some kind of
transportation You must have a car to hold a job or look for a job. Your
unemployment check, if any, might get you an older car from a
tote-the-note lot.
Whatever you do, I wish you the best. |
