You Can’t Afford your Car Payments; Now What?

 

Maybe it’s time to look for a used car in Richmond, VA

You’ve just been laid off at work but you still have to pay the mortgage, the power bill, the kid’s daycare, the health insurance, and be able to buy groceries let alone pay your car payment. But finding a job can be difficult when you have to check “no” next to the question on the application that asks you if you have your own means of transportation. How can you keep your car when you can’t afford it? We will go through the most common avenues owners of used cars in Richmond, Va take when they get in over their head and determine both the pros and the cons of each avenue.

Often the most tempting avenue is to stop paying and let the bank or lien holder repossess the vehicle.

Letting your car be repossessed might mean that you no longer have to pay insurance or car payments on it, but depending on the lender, you may still be liable for the loan. Your best bet of avoiding this is to not damage the vehicle, not hide it, or take it out of state. Being as accommodating as possible to the lien holder will be in your favor. Abandoning the vehicle in any way; like abandoning kids, usually makes things worse and does not allow you to “walk away” from the financial burden. Repossession may also tank your credit score depending if the lender reports the repossession. In many cases with used cars in Richmond, Va such as with the Buy Here Pay Here program at Airport Auto Sales, the lien holder would rather try and work with you keeping the car rather than repossess it.

Another avenue many hard on their luck customers try to take is to trade in their used cars in Richmond, Va for one that is more affordable for them. Especially if the owner is driving a large truck that costs at least $300 a month in just fuel, this can be an extremely tempting option. The biggest concern for our Buy Here Pay Here customers or owners returning to another dealership is that if the loan amount exceeds the trade in value, the excess could get rolled on to your new car loan. The old car loan on top of the new one might jump the monthly cost to over what you were originally paying. The new car also might require anothy expensive downpayment and the often forgotten about sales tax again. Typically, holding on to the car you already have is the financially wisest option.

An often forgotten about option is using friend and family lifelines. If you have a family member or friend who can help you make the payment in exchange for being able to use the car or perhaps you help them with that big move coming up. Just keep in mind that you are still responsible for your loan if these friend or family members do not pay just as a co-signer would be. As ideal as this option is, it can often be hard to get this help when you need it most.

The first and best thing to do is usually talk to your lender. Explain your situation and what kind of a timeline you are looking at to get back on your feet. Some lenders including the Buy Here Pay Here lot at Airport Auto Sales may be willing to work with you as opposed to going through the hassle of repossessing the vehicle. Don’t be embarrassed; remember that a large majority of owners with used cars in Richmond, Va have difficulties paying their car payments at one time or another. Lien holders deal with similar situations every day and can best advise you on how to proceed. Communicating will not only typically give you more time to make a payment, but will make the lienholder more inclined to help you.

The stress from not being able to make ends meet can often be overwhelming and it can be tempting to just turn your back and not “face the music”, but you are not alone. Communicate with friends, family, and lienholders until you find a compromise that will help you keep driving.