PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
What do I do if I can no longer afford my car loan?
Finances are tight, and with a baby on the way, something has to give. I can no longer afford my car. What should I do if I can’t pay my car loan anymore?
Lauren Smith · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Congratulations on the baby! I am sorry to hear you can no longer afford your car loan, but I am happy to help you figure out the next steps.
You have a couple of options. Before you default on your loan:
Talk to your lender: Be upfront with your lender. Often, they can find ways to help you. This could include allowing you to defer the loan, which will freeze or lower your payments for a short time. They may even be able to renegotiate your deal.
Refinance: You may be able to refinance into a new loan with lower interest or lower monthly payments. On average, car owners pay $85 less every month by refinancing their auto loans. See if refinancing will save you money quickly and easily with the
Jerry
app.Surrender your car: If you don’t need your car anymore or can get around without it, you could always surrender the car to the bank.
No matter which you choose, any of these options is preferable to defaulting on the loan. Defaulting can lead to a hit on your credit score, repossession, and collectors garnishing your hard-earned wages. So, talk to your lender and come up with a plan instead.
View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies