The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Contact
  • Subscribe
  • Submit an Article
  • Books
  • Categories
  • Coaching
  • Book Lynnette
  • Money Coach University™
No Result
View All Result
The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Contact
  • Subscribe
  • Submit an Article
No Result
View All Result
The Money Coach
No Result
View All Result

What Should I Do If I Can’t Afford My Car?

Lynnette Khalfani-Cox, The Money Coach by Lynnette Khalfani-Cox, The Money Coach
in Loans
Reading Time: 2 mins read
12
SHARES
206
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

If you’re in over your head with an expensive car note, it’s time to think about getting from underneath that burden. Here are some options for dealing with overdue car payments or other issues when you’re struggling to pay for your vehicle:

  • Get a Payment Extension

If your financial difficulties are temporary, or if you just hit a brief bad patch, you may be able to convince your auto finance company to give you a payment extension.

Here’s how it would work: the auto company would allow you extra time to make a payment (without reporting you to the credit bureaus). Alternatively, they could agree to let you forego one or two payments in the near-term, and then tack on those extra payments to the end of your car contract.

Either way, you keep the car, get a bit of breathing room financially, and don’t do damage to your credit rating.

  • Rewrite Your Contract

As an alternative to getting your car repossessed (which, believe me, auto companies don’t want to do), you might inquire about having your contract re-written.

Perhaps they would agree to a longer repayment period, lowering your payments. Or in some instances, you might qualify for a lower interest rate. In some cases, this is a long-shot.

But it’s worth pursuing before you they take the car, or you do a “voluntary” repossession, both of which will seriously mar your credit rating.

  • Consider Refinancing Your Auto Loan

If you try to negotiate with your existing auto finance company, but can’t get them to budge, you might consider refinancing your auto loan with another lender – especially if that will get you a much lower interest rate, which in turn will lower your car payment.

Many people don’t know that you can refinance your car loan, just as you can refinance a mortgage. But a car refinancing is easier, faster and requires no points, appraisal or closing costs. To lower your car payments, try Capital One Auto Finance (http://www.capitaloneauto.com), the top online vehicle lender in the United States.

Refinancing takes just 15 minutes and saves an average of $1,353 over the life of the loan. What will you do with the money you save? Pay down all those credit card debts, naturally.

  • Save Money on Car Costs

In addition to your monthly payment, there are a lot of other expenses involved with having a car, like gas, maintenance, insurance, parking.

To save on gas and parking, you can give up a paid covered parking spot and park for free on the street, or take public transportation into the city to avoid feeding quarters in a meter or shelling out cash at a garage.

To save on car insurance, opt for a higher deductible in exchange for 10% to 25% off your annual premiums, or ask your insurer about good driver discounts, discounts for having an alarm system, or lower rates for taking a defensive driving course.

Tags: auto loansauto refinancingcredit
Previous Post

I’m a Shopaholic. How Can I Stop Over-Spending?

Next Post

Making Home Affordable Explained

Related Posts

PPP Loan

Who Qualifies for the SBA PPP Loan?

by Lynnette Khalfani-Cox, The Money Coach

The $349 billion Paycheck Protection Program (PPP), which offers forgivable PPP loans to America’s small business owners and contractors, is shaping up as one of the most in-demand lending programs ever from the Small Business Administration. After the PPP loan initiative was in effect for only 3 business days, on...

cosigning a loan for family or friends is a major decision.

The Pros and Cons of Cosigning a Loan for Family & Friends

by Guest Blogger

Blending family, friends, and finances can be risky. A variety of emotions are attached to the decision to cosign a loan for a friend or family member. They may sincerely need your help, or you may feel an obligation to help because they have provided financial assistance in the past....

AskTheMoneyCoach- HELOC

Is a HELOC Right for You? Pros, Cons, and Considerations to Make

by Guest Blogger

A home equity line of credit, or HELOC, is a popular way to finance everything from home remodeling or repair to debt consolidation, or even a vacation. If you’re a homeowner, you’ve probably heard of them, but should you apply for one? Here’s what you need to know. What is...

mortgage after bankruptcy

Can I Qualify for a Mortgage After Bankruptcy?

by Lynnette Khalfani-Cox, The Money Coach

Q: My husband and I are in our final year of bankruptcy this year. We did a chapter 13 in sept 2010.Income has significantly increased over the years and we would like to purchase a new home this year.My question is how soon after our bankruptcy disclosure might we qualify...

crowdfunding

4 Ridiculous Crowdfunding Requests That I Will Not Support – So Don’t Ask

by Lynnette Khalfani-Cox, The Money Coach

Crowdfunding in the Internet age started off with the mostly honorable intentions. At first, the main idea was to use social media to let people from all around the world chip in money to help out others in need or worthy causes. That’s why we’ve seen people donate in droves...

payday loans and millenials

Are Payday Loans the New Credit Cards for Millennials?

by Lynnette Khalfani-Cox, The Money Coach

Every year, 12 million Americans take out payday loans, spending more than $7 billion on loan fees alone, according to research from The Pew Charitable Trusts. While people of all age groups and backgrounds get high-cost payday loans, studies show that Millennials are now turning to payday loans at a faster clip than...

loans

Get a Loan With No FICO Score Needed, No Joke

by Lynnette Khalfani-Cox, The Money Coach

Before you can get a mortgage, student loan or personal loan, lenders usually first check your credit score. But one lender – a San Francisco-based startup called SoFi – is changing all that. In fact, you can get a loan with SoFi even if you have no credit score at...

Load More

Popular Posts

  • Car repair

    What to Do If You Can’t Afford a Car Repair Bill

    1394 shares
    Share 558 Tweet 349
  • What to Do if Your Spouse Stole Money From You

    1183 shares
    Share 473 Tweet 296
  • What to Do If You Can’t Afford to Leave Your Spouse

    1121 shares
    Share 448 Tweet 280
  • Here’s Why I Pay My Kids For Good Grades (And Maybe You Should Too)

    1031 shares
    Share 412 Tweet 258
  • What Do All Those Strange Codes In My Credit Report Mean?

    824 shares
    Share 330 Tweet 206
  • Do This Now If Your Wages Were Not Reported

    760 shares
    Share 304 Tweet 190
  • How to Find Out if a Debt Collector is Licensed to Collect Your Debt

    740 shares
    Share 296 Tweet 185

All information on this blog is for educational purposes only. Lynnette Khalfani-Cox, The Money Coach, is not a certified financial planner, registered investment adviser, or attorney. If you need specialty financial, investment or legal advice, please consult the appropriate professional. Advertising Disclosure: This site may accept advertising, affiliate payments or other forms of compensation from companies mentioned in articles. This compensation may impact how and where products and companies appear on this site. AskTheMoneyCoach™ and Lynnette Khalfani-Cox, The Money Coach® are trademarks of TheMoneyCoach.net, LLC.

©2009-2023 TheMoneyCoach.net, LLC. All Rights Reserved.

RSS / Sitemap /Submit an Article / Privacy Policy / LynnetteKhalfaniCox.com

No Result
View All Result
  • Books
  • Categories
  • Contact Lynnette
  • Get Coaching
  • Book Lynnette
  • Money Coach University™
  • Home
  • Subscribe to Newsletter
  • Submit an Article

©2009-2023 TheMoneyCoach.net, LLC. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist