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 happens when you can't pay your car loan?
I just got a new car a few months ago using a 72-month car loan. Making payments hasn’t been a problem, but 72 months is a long time—a lot can change! I started stressing out about what would happen if I lost my job or had an emergency. If you can’t afford your car anymore, what are your options?
Jack Walsh · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
It’s great to hear that your
car loan
payments haven’t posed an issue yet, but you’re right—72 months is a long time. You never know what could happen.If you can’t pay your car loan, the lender could repossess the car, which will hurt your credit. So if you know you won’t be able to make a payment, you need to contact the lender immediately to discuss your options and avoid repossession.
Because it’s in the lender’s best interest to work with you, they’ll often allow borrowers to modify the loan or defer payments in times of financial hardship. But if that isn’t enough, you could:
- Surrender the vehicle to end the loan
- Refinancethe loan to lower your monthly payment
- Sell or trade in the vehicle for a more affordable option
Additionally, you can free up extra money to put toward your car loan by reviewing your
car insurance
policy to ensure you aren’t overpaying. Jerry
can help. Jerry is an insurance comparison app that shops for low prices with over 50 insurance companies for free.If you’re hesitant to switch plans or insurance providers because you’re worried about the work involved, don’t be. Jerry does all the paperwork for you and even helps cancel your old policy! And if you have any questions along the way, just text one of our agents through the app.
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