Loan Deferment Programs for Making Car Payments Easier During COVID-19 Coronavirus
Business owners and employees from all income levels and walks of life have been economically impacted by COVID-19 Coronavirus and the economic impact of shutdowns and business closures. Many families report that one or both parents and couples have income losses and economic challenges since the virus impact started earlier this year. Making car payments during COVID-19 Coronavirus can be difficult if not impossible.
Luckily for new and used car owners, there are many programs for owners impacted by COIVD-19 Coronavirus. We all see the TV commercials from automakers advertising no payments for 120 days, and not having payments for four months can help families struggling to make ends meet. For some, getting into a new car loan with 120-day payment deferments frees up the buyer to do something else with their car payment budget during the Coronavirus outbreak.
In Addition to Loan Deferments, Joseph Wrobel Can Help You With Other Options for Car Payments. Watch Your Car and Bankruptcy
Loan Deferment Relief from Automakers and Lenders is Making Car Payments Easier During COVID-19 Coronavirus
If you are currently financing a car you bought new, you might qualify for a loan deferment program offered by the automakers and major financing companies and lender servicers. In many cases, used car and truck loans serviced by major lenders also qualify for loan deferment relief, such as 60, 90, 120-day payment deferment plans.
Payment deferrals put your loan payments on pause. This gives you a little time with no late fees or penalties. This is not the same as loan forgiveness. You still pay the same amount, the same amount of payments apply, they are just extended beyond the original loan maturity date when your loan is paid in full.
This Edmunds article has a compiled list of COVID-19 payment deferral programs: Car Payment Relief During Coronavirus.
New car makers like Hyundai offer up to 6 months without payments, which is a form of a payment deferral program. Many major automakers offer 60 and 90 days with no payments.
Do You Qualify for Loan Deferment Relief from Making Car Payments During COVID-19 Coronavirus?
While some loan deferment relief programs are available to customers in good standing on their loans, there is no guarantee that every loan qualifies for a deferment. Decisions on whether you qualify can be made on a case by case basis, and even though you might not see it advertised, your lender might have a deferment program that might help you get a break from making your car payments.
To find out whether you qualify for extensions call your lender and discuss your options. If you are in financial distress and worried about making your car payments during COVID-19 Coronavirus, your bank or credit union might be able to help you out even if they don’t have a specific loan deferment program.
Lease Deferment Programs for Help Making Car Payments
Leases can be more complicated because you are only financing a fixed time with your vehicle. Lease extensions, when available, add months of payments to the end of your lease if there is a payment deferment option. There can be added expenses if you take advantage of a lease deferment program, such as an additional year of registration fees if your lease extends beyond the fixed years of lease time.
Chicago bankruptcy lawyer Joseph Wrobel can help you with bankruptcy options to keep your car, sign a reaffirmation agreement, or get rid of the car loan and vehicle you cannot afford. If you discharge your car loan and surrender the car in a bankruptcy, you might pick up a less expensive used vehicle or keep your car during bankruptcy. For example, if you file Chapter 13 bankruptcy, all collection activity stops when you file and you can get caught up on your car loan and other obligations over a three to five year period.
If a Chapter 7 bankruptcy is your plan to get rid of debts you cannot pay, you can still keep your car by negotiating a reaffirmation agreement. Simply stated, the reaffirmation agreement acknowledges that you will continue to make car payments and keep your financed car, even if you are in a Chapter 7 discharge bankruptcy. When your payment obligations on other items go away, you have more money to make car payments.