With prices on the rise, it’s common today to see households not being able to keep up with their monthly expenses. In the event that you are not able to make a car payment in full, you may choose to send a partial installment rather than sending nothing. Good Fellow’s Auto Wholesalers is here today to explain what making a partial car payment means and what it looks like. Follow along this guide and see what Car Financing advice we have to offer.
Contact the Loan Boss
If you are thinking of making a partial car payment instead of a full one, the first step is to contact your loan boss and inform them in advance of your payment. You should request an incomplete installment without receiving late expenses. This could help you to change the due date of the payment. You should see if the lender will count this as late, as this could impact your credit score. In addition, your lender may offer hardship programs that are offered to people to help in these types of situations.
Make a Game Plan
Now that you have made a partial car payment, it’s important that you think about how you are going to pay the amount outstanding. If you leave the rest of the payment unpaid, you could be subject to a penalty fee or have to pay extra interest. While these may not seem like a big deal at first, we can assure you that they can quickly add up. In the case you default on an auto loan, the lender may have the right to repossess the vehicle if you begin to miss too many payment dates.
Avoid Credit Damage
If you make a partial payment and avoid paying the balance, this could result in credit damage. Car loan providers make reports to Equifax and/or TransUnion, which are credit reporting companies. This means that if you stop making full payments, you could see a massive drop in your credit score. If you are late on too many payments, you could lose your creditworthiness and suffer when lenders no longer approve you for loans. If you are going to make a partial payment, it’s important to get back on track and pay the balance owing ASAP.
How We Can Help
If you are looking to work with a Used Car Dealership in Toronto that can help you through this hard time, our team at Good Fellow’s Auto Wholesalers would be pleased to work with you to come up with a game plan that creates a solution for your situation. Our company is known for our great financing reputation and our dedication to our customers. If you have any general questions, inquiries, or concerns regarding your financial situation, our team would be happy to assist you next. Feel free to contact our team today by giving us a call at 1 (855) 581-9590. We look forward to speaking with you.