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How many missed car payments until the car is repossessed?
I got a loan on a car, and I really don’t know if I can afford it. I got so caught up in how nice the car is, and now I’m afraid it’ll get repossessed! So far I’ve made my payments, but I’m really struggling. How many payments can I miss without the car being taken?
Chloe Jenkins · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
I’m really sorry to hear that you’re in this situation. In most states, you only need two or three missed payments until the car is repossessed, which can also really damage your credit score. However, there are still a few things you can do to avoid repossession altogether:
- Know what you owe and how much you can pay. Understanding your car loan balance,interest rate, and term can help you prepare for upcoming payment by creating a budget. See what expenses you can cut back on in order to make your payments.
- Understand your options. If you’ve reviewed your budget and found that you can afford the payments, then that’s great! All you have to do now is call up the lender and make the payment as soon as you can. If you realize that you can’t afford future payments, you can deal with the first missed payment with a loan deferment. This will stop late payments from hurting your credit score or repossession.
- Call your lender, explain your situation, and ask about potential solutions. This can be a hard conversation to have, but you should remember that you are asking for help, so it’s important to try not to be defensive or angry. Explaining your situation in a courteous and friendly manner can make lenders more inclined to cut you a break. Just know that you will probably have to prove your story, so make sure to have evidence on hand.
- Considerrefinancingyour loan. This might be an option if your credit has increased since getting the loan, market interest rates have gone down, or you plan to extend the term of your loan. You should know that extending your loan could result in you paying more for the vehicle overall, but it can save you money in the short term.
You may also want to check out the
Jerry
app to see how much you can save on your car insurance. We’ll get you personalized quotes from top providers in seconds, so that all you have to do is pick the best deal on the coverage you need. And once you’ve picked one, we’ll even help you switch!I know this situation can be really stressful, but I hope these answers and tips have helped you decide what to do next. Good luck!
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- Gregory R.
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