Missing an auto loan payment isn’t something we recommend but is something that happens, often through no fault of our own. So, what happens next? What should you do if you miss an auto loan payment in Port Dover?
The first thing to do is take a minute and take stock. There is no need to panic and there’s no need to rush into action. We need to move quickly but we have enough time to gather our thoughts and prepare the next steps.
But what are those next steps?
Missed a Port Dover Auto Loan Payment
If you suddenly realize you have missed an auto loan payment, you need to do three things.
Work out what happened
Did you forget to make the payment? Did the automatic payment fail? Did you have insufficient funds in your account to make the automatic payment? Did illness or COVID cause the missed payment?
What you do next depends on what exactly happened.
Whatever happened, you need to assess the situation, gather evidence to prove whatever it was and come up with a plan for it to not happen again.
Decide what to do
What comes next depends on what happened. If you just forgot or missed the payment, you can skip this and go straight to the next step. If it was something else, you have a little more work to do.
If you cannot afford to make the Port Dover auto loan payment, you need to assess your situation. Is it a temporary situation that will be remedied soon? If it is, you can request a single payment deferment. This is where the missed payment is added to the end of the loan. You’ll just have to pay interest for the month and not the whole amount.
If affordability is longer term such as losing a job or becoming too ill to work, you need to consider your options. You may need to consider selling the car, taking a payment holiday (up to 6 months), refinancing the loan or transferring the loan to someone else.
What you choose depends entirely on your personal situation.
Contact the lender
Your next step is to contact the lender right away. Make sure you have any evidence to hand and have your case and your situation clear in your head.
Discuss the situation with the lender. If it was a one-off, explain the situation and explain the steps you’re taking to prevent it happening again.
Then make the payment.
If the situation is longer term, discuss it with the lender and talk about your desired next step. Selling the car and settling the loan, transferring the loan, taking a payment holiday or refinancing.
If you missed the payment through illness or unemployment, expect to be asked to prove it. If you missed a single payment through unemployment and you have another job, be expected to provide the offer letter for that new job.
Whatever you end up doing with the Port Dover auto loan, don’t panic but don’t delay. Don’t rush to contact the lender without assessing your situation first but once you know what’s going on, contact them immediately and take action.
For those of you who know that you have a challenging credit situation, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!