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What will happen if you can't pay your car loan?
I used to consider myself a decent day trader. I only did it in my free time, but I got a bit too ambitious and recently lost a significant amount of money due to a few poor investments. I’m doing my best to make ends meet, but I just don’t have enough money to cover all my monthly expenses. What happens if you can't pay your car loan?
Jack Walsh · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
I’m sorry to hear that your investments did not pay off, and as a fellow trader, I’m hoping the market swings back in your favor soon!
If you can’t pay your
car loan
and start missing payments, your credit will be negatively affected and the lender could repossess your vehicle. However, this is typically a last resort.Believe it or not, your lender doesn’t want your car. They’d rather work with you than repossess your vehicle. So, you should contact your lender before missing any payments to see if they are willing to modify the loan or allow you to defer payments.
However, if you and your lender can’t work it out, you might want to consider:
- Refinancinginto a new loan with monthly payments you can afford
- Voluntarily surrendering the vehicle and ending the current loan
- Selling or trading in the vehicle for one you can more easily afford
Besides making your car loan payments more affordable, you can make covering your monthly costs more manageable by using
Jerry
to get the best rate on your car insurance
.It’s this simple: download the Jerry app or go to getjerry.com. In less than 45 seconds, Jerry collects all of your information from your existing insurer. Choose from competitive quotes from 50-plus top insurance companies, and Jerry takes care of the rest—securing your new policy and helping you cancel your old one. The average Jerry user saves $879 a year.
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- Gregory R.
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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.
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