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Can I make partial payments on my car loan.?
So I fell into some hard times..With my wife and i only living on disability, and only have one car, with a rather high payment. It has become a struggle to get back on our feet. Though there is a light at the end of the tunnel , it is still a few months off..So my question is can I make reduced car payments to my bank, without them wanting to repo my car..Please someone give me some good advice on how to negotiate this.3 years ago - 4 answers
Generally a bank or lender will work with you through tough times, especially if your financial situation will improve in a few months. Just set up an appointment with a loan officer, bring as much documentation supporting your situation and some evidence it will improve in the coming months, and they will work something out.
Banks don't want to repo your car, especially if you are on disability. The costs of recovery and amount they sell it for at auction leaves them in the hole. Normally they can recover those losses by suing the borrower and getting a judgment for the balance remaining on the loan, plus expenses and losses they incurred . Since they cannot garnish or seize disability benefits, they would have to absorb the loss.
Don't be rude or demanding, but let them know disability is your only current source of income and your are willing to work our some kind of reduced payment until your situation improves financially.
You will have to ask the lender.
As a general rule, any payment less than a full payment would put you in default and at the risk of repossession.
If you don't pay the full amount required your payment will report late to your credit reports.
Some lenders do not accept partial payments. They will return your check to you.
Making partial payments will not reduce the likelyhood of repossession.
Contact the finance company and tell them your situation and essentially "beg" for reduced payments for 6 months.
Call your lender. Sometimes they will allow you to make interest only payments and add payments to the end of the loan. It's not very good financial management but if you just need a couple months to get over the hump, you may be able to work something out with the lender.
Do not just take it upon yourself to send partial payments. You will just rack up addition charges in late fees.
Source(s)by bdancer222 - 3 years ago