What to Do If You Can’t Make Your Car Payment During the Coronavirus Pandemic
If you’re experiencing financial challenges during the coronavirus pandemic, you might find yourself unable to make payments on your car lease or loan. Here’s what you should do if you find yourself in this unfortunate situation.
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Leased vehicle
For a leased vehicle, ask for a deferral on your upcoming payment. You could also inquire about transferring the lease if you have a family member willing to temporarily make lease payments.
There are also some companies that work to match prospective customers interested in taking over a lease with current lessees. Swap-a-Lease is a great place to start, according to Consumer Reports.
Traditional car loan
For a traditional car loan for your vehicle, you’ll also want to ask for a deferment. Many financial institutions are working with loan holders on a case-by-case basis during the COVID-19 outbreak.
If you do get a grace period on making payments, remember that you’ll still have to cover the expenses of those deferred payments eventually. You’ll also have to pay for any interest that accumulates during the grace period.
Potential extensions on deferment policies
Besides financial institutions, some automakers are offering financial relief options through the end of this month. For example, GM Financial is waiving late fees incurred between March 1 and April 30.
Since many states are considering extending their stay-at-home mandates, it’s possible that automakers will extend the deadline for their financial relief policies past April 30. “As we come out of shelter-in-place and start coming out of our shells and getting back to business, I would expect some of the automakers’ programs to continue for a little while,” said Stephanie Brinley, an analyst at IHS Markit, a firm that tracks the automotive industry. That’s definitely some positive news for those of us with car leases and loans who could use a financial break this season.
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Whitney Russell resides in Dayton, though her spirit can be found beach-bumming in Puerto Rico (the land of her half-Puerto Rican heritage). When not crafting car-related content, she can be found chasing after the most amazing toddler in the world, watching her “beaver” of a husband build amazing woodworking projects, hanging out with two crazy dogs, and visiting family and friends. She also enjoys traveling, crafting, and binge-watching period dramas when time allows. See more articles by Whitney.