From hard economic times to current pandemics, employers are now reducing the employment hours without notice. As an employee, there is nothing you can do about it if you lack a bargaining agreement to protect you. Such moments come with hard times, especially if you’re financing your car.
For many employees, car finance payment takes a very high percentage of their monthly disbursements after rent and mortgage payments. So, what do you do when struggling with car finance repayments? Well, there are several car finance options to consider when your employment hours have reduced. Let’s have a look.
Sell Your Vehicle
You can opt to advertise your vehicle in various buyers’ platforms. If you have to consider this option, make sure you tag it at a price that will give you adequate money to pay off the loan. Selling below that means you’ll have to dig back into your pocket, and that’s not what majority wants. When making a sale, you can do it privately or engage a dealership.
Downgrade through Trade-In
Another common option that car owners have been embracing is preferring a trade-in. It’s because you’ll take a car which requires you to remit lower monthly payments. Make sure you know the car’s trade-in value beforehand for easy negotiation. Most dealerships are willing to take you through the process and even advice you for manageable car options to consider.
Bargain for Payment Extension or Modification
All this starts with talking to your lender or car dealership. Since the lender doesn’t want you to default payment, they can always have a way out to accommodate you. Most often, if they have to listen to you, you get an extension for a few months or even modifications to pay the amount you can afford. If possible, struggle to have them give you a new loan contract.
Refinance the Car Loan
The move applies when you have strong credit. Refinancing means you’ll take a longer loan and use that amount to relieve the stressing and maybe urgent car finance payment loan. Interestingly, many lenders are ready to refinance you if you meet their specifications. You must be cautious with this move because it might end up costing you more.
Hand Over the Car Keys
Sometimes, the only way out is voluntarily handing over the keys. It happens when you figure out you have a lot of bills awaiting you, and you don’t want more stress or engagements that disturbs your peace of mind. Note that the lender will have to sell the car, and if there is a balance, they’ll come back to you. Try to talk with your lender and let them do everything possible to auction at a good price.
The moment your employer cuts the working hours, don’t sit down and do nothing, knowing very well that you have to remit the car payments. Consider the above car finance moves to save you’re the headaches and your credit score.