If you have a car loan and the payments are killing you each month because they are jut too high, you may be interested to know that there are several ways out there to get relief. One common way to get payment relief is to apply for an auto refinance through the auto finance company that you currently have for your auto loan.
They know you and you know them and if you have a good payment history even with bad overall credit getting the loan approved should not be much of a problem. Another way is to do an online search for auto finance companies. You can also negotiate with your current lender and get more time to make your payments if you are just short or need to use the money for something else.
If you feel that your payments are too high and you have been current on your auto loan, you can get an auto refinance through your current auto finance company even if your overall credit is not that great.
You need to call the Customer Service department of your current lender and tell them that you need to speak to the Refinance Department, if they have one. These days, the Customer Care Representative should be the one to help you, but they may have a separate Refinance Department for these requests.
Make sure you are talking to the right person. After filling out, signing, and faxing back some forms, you can apply right over the phone. A good auto refinance should extend your payments and substantially reduce the amount of your monthly payment.
If your current company will not offer you an auto refinance or if they decline you do not become discouraged. Most of the “better” lenders these days will not do loans for people with less than perfect credit, but there are many, many credit providers out there that will. Using the auto itself as collateral, they will usually find out first what the residual value of the car is and the vehicle may have to pass an inspection.
These companies can be found easily online, but watch out for fraudulent companies, spam, viruses, and other malware when searching. If something looks fishy, do not open the attachment, just move on to the next company in your search.
These credit providers will give you an extended term on your auto refinance but with rates that may not be as good as what you have now. The main thing is that your payments become lower so that you can afford them on your budget.
The only other solution in the short-term is to request a payment deferment from your current auto finance company. Many times, if your payment history is good, they will grant you a one or two month payment deferment. These payments will be added to your principal balance and will be due at the end of the loan. There is a fee for this service so please check with your provider for that information.