What happens if I miss an auto loan payment? Sometimes you might find yourself facing an undesirable situation: you have missed a payment on your auto loan. Of course, this is an understandably worrisome and panic-inducing situation. However, one of the absolute best things that can combat the fear of any kind is knowledge.
Be aware of what happens when you miss an auto loan payment. That way, you could then be a lot better equipped to sort out the situation and get back on the right track.
What if I Missed a Payment on My Auto Loan?
Missing an auto loan payment is not the end of the world. However, if you do not act soon, your vehicle could end up being repossessed. Repossession typically occurs after two or three consecutive missed payments. This is definitely something you should avoid if you can. Not only will you be without reliable transportation, but your credit will take a serious hit.
What You Should Do
First things first, do not panic. This will not help your predicament in the slightest. Take a deep breath and relax a little. Once you realize a loan payment has been missed, you need to act quickly.
Many lenders are pretty forgiving. They may be willing to work with borrowers who are behind on their payments. But some auto loan lenders may not be. Some auto loan lenders may be able to remotely disable your vehicle (or sometimes even repossess it) after the first delinquency. If you wait too long, you could end up having your vehicle repossessed if no action is taken.
Repossession requires work, expense, and time for the lender. If you act quickly enough, you may be able to discuss your options with your lender. That way, you can avoid any future missed auto loan payments.
If you can afford to make the missed payment and simply forgot to pay on time, then make sure that you call your lender as soon as you possibly can. There may be a late fee involved, but it will be preferable to the alternative of losing your car. If you lose your car you may not be able to get to the places that you need to go—like work.
Don’t Miss a Payment
In order to avoid incidents like this in the future, you could set up automatic payments so that you do not have to ever think about making your payments at all.
If the reason you did not make the loan payment on time was because you could not afford it, then you should consider the following options.
- Turn in Your Car: You can choose to make things easier for the lender by turning in the keys and the car to your lender for a voluntary repossession. By doing this, you can avoid getting hit with any further fees that the lender would charge you, including the cost of repossessing your vehicle.
- Ask for an Extension: Depending on how late the payment is, you could ask for an extension from the lender. An extension could give you a couple more days to come up with the missed payment for the auto loan.
Get an Auto Loan Through Max Cash®
Max Cash is here to connect you to the people that can help.
Every day Max Cash helps countless people all over the country get paired up with the most reputable lenders in the business. Customers receive personalized loan help and an excellent auto loan deal that works for their unique financial situation.
We do all the work for you, so you do not have to waste time searching for reputable lenders and then negotiating a deal. This is especially hard when you may not know the ins and outs of auto loans or are unfamiliar with the lending industry. We use our financial expertise to get you back behind the wheel as soon as possible!
Speak with a Max Cash Agent Today- Don’t Miss an Auto Loan Payment
Whether you are interested in applying for car financing or car title loans, we are here to help. Max Cash can help connect you to online loans and other resources! So give us a call or send a text to us directly at (855)561-5626.
