What to do if you’re struggling with Guelph auto loan payments

What to do if you’re struggling with Guelph auto loan payments

Posted on February 18, 2021

We specialize in affordable auto loans but circumstances can quickly change. What is affordable one minute can quickly become problematic the next. Often through no fault of your own. So, what should you do if you’re struggling with Guelph auto loan payments?

The first thing to do is no panic or make any rash decisions. No challenge is insurmountable and every problem has a solution. Especially when you have a team of Guelph auto loan experts on hand to help.

Here are a few things you should do if you’re having trouble making payments:

Assess the situation

The first thing you should do is assess your situation. Is it temporary? Is there a way around it? Is there anything you can do to alleviate the situation?

Being able to rationally assess the situation is key to understanding it. Which in turn is essential in overcoming it.

For example, losing your job could be temporary and requires a temporary solution. Illness or divorce is more serious and may require a more fundamental solution.

Talk to your lender

If you know you’re in danger of not making payments, you should speak to your auto loan provider right away. Preferably before you actually miss a payment.

Explain the situation, explain whether it’s temporary, short term or something longer term and work with them. Most lenders will be willing to work with you if you’re honest and go to them before you miss payments.

They can offer payment holidays, auto loan refinancing and other solutions to help.

If your difficulties are down to COVID, there is extra help around from the government, lenders and charities. Use all of the available resources you can.

Ask for help

If you have family or friends who could help, consider approaching them. Whether that’s for a loan to help meet payments or to come in on the loan as a cosigner. If you know people you trust and who trust you, don’t be afraid to ask for help.

You would be surprised at how willing Canadians are to help each other out when times get tough!

Sell the car

If refinancing or taking a payment holiday won’t solve your problem, perhaps selling the car will. This obviously won’t work for everyone but if you have a premium car or large SUV, you could sell it, pay off the loan and perhaps have a little left over to buy a cheaper car.

It won’t be forever but could get you out of a situation. Much will depend on the type of car you have of course but it is an option.

Talk to Guelph auto loan experts

If your current lender doesn’t have any refinancing options for you, perhaps we will. Much will depend on where you are in your loan and how much you have paid off but there are always ways around a problem. Refinancing is just one of them.

Remember, it is always, always easier to get help before you miss a payment. Missing an auto loan payment will impact your credit score, which can impact the amount of help you can get.

When you’re ready for a car loan, get in touch with the Guelph car loan experts at Northway Ford for great deals on auto finance.

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