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At Risk Of Missing A Car Payment In Welland?

At Risk Of Missing A Car Payment In Welland?

Being at risk of missing a car payment is not something to be taken lightly. Defaulting on any type of debt can have a significant impact on your credit score and financial wellbeing so should be avoided at all costs.


Fortunately, you have options when at risk of missing a car payment. Our Welland auto loan team outlines some of them.


Defaulting on auto loans


Defaulting on an auto loan is a situation nobody wants to be in but plenty of people find themselves in. Often through no fault of their own, thousands of Canadians find themselves in difficult situations and can see no way out.


There’s always a way and we’ll share some actionable tips that should help.


Discuss with your lender


If you’re in genuine financial distress and are at risk of defaulting, talk to your lender before you miss a payment. They have various tools at their disposable that could help depending on your situation.


That could be a payment holiday, negotiating down the loan, early settlement or something else.


Always discuss your situation with them before you default. Do it before you miss a payment and you’re a valuable customer trying to do the right thing. Do it after you miss a payment and you’re a defaulter.


As you can imagine, lenders view those two types of customer very differently!


Refinance the Welland auto loan


If you’re still above water right now, you could refinance the loan. If you have equity in the car and have paid off some of the loan, you could get a new loan for less money, pay off the old loan and have lower monthly payments.


You could also refinance over a longer term to lower those monthly payments too. Extending the term from 3 to 6 years will cost more in interest over the term but will cost less each month.


That could be enough to get you through.


Buy a cheaper car


Depending on the seriousness of your situation, you could sell your car and buy a cheaper one. Much will depend on the car, how much equity you have, your credit score and other factors but it could be something worth exploring.


Sell the car, pay off the loan with some of the cash and buy something cheaper with what’s left over.


It doesn’t have to be forever. You can get another car or another Welland auto loan once you’re back on your feet.


If you move quickly and remedy your situation before you miss a payment, you should still have enough credit score to qualify for the same loan down the road when you’re in a better position.


We strongly recommend doing everything you can to avoid defaulting on an auto loan. Missed payments stay on your credit report for 6-7 years and your credit score takes a serious hit.


Given how many other options you have, you should never need to default. Not when you have us to help anyway.


We will use all our skill and experience to deliver the lowest possible Welland auto loan rates, guaranteed. Contact Car Nation Canada Direct to learn how we can help.


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Categories: Auto Loan

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