What happens if I miss a car loan payment?
In the time of COVID-19, people are being faced with very hard choices. The true toll of the economic impact of this crisis may never be accurately tallied. If someone has lost their job or is just waiting for the other shoe to drop, they could very easily fall into a very difficult financial situation. You might be doing your books for next month about now and may be wondering, ‘What happens if I miss a car loan payment?’ The last thing a struggling person needs is more uncertainty, so the financial experts at Team Gunther Kia want to help in any way we can. Let’s take a look at what our team came up with.
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The difference between being late and missing a payment is quite important. We all forget things from time to time. Making a car payment a day or two late isn’t likely to make much of a difference to the institution who holds the loan. However, this is not a practice we would suggest getting comfortable with.
Most lenders will consider a loan payment missed when it’s 30 or more days late and that is when the ball starts rolling on things like damaging information on a person’s credit report or even the threat of repossession. None of that is good.
A situation will go from bad to worse very quickly once two or three payments missed.
It’s important to note that the payments don’t need to be missed consecutively for bad things to happen.
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What can I do if I’m going to miss a car payment?
If you know you’re going to be late on a payment or miss one entirely, the worst thing you can do is nothing. Every financial expert we talked to said the same thing, it’s better to go on the offensive and reach out to the lender as soon as you know there is a problem. Banks and other financial institutions really don’t want to repossess vehicles. That’s not their business. Reach out to them, explain your situation and try to come up with a solution that will work for everyone. A mutually successful outcome will be much harder to find if the bank has to come looking for you to get their money.
Please don’t hesitate to reach out to a Team Gunther Kia representative, if there is something we can do to help you out during these tough times.