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Refinancing Your Vehicle

Refinancing Your Vehicle - The Beacon

07-2016

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By: Tom

Refinancing Your Vehicle

Perhaps you bought your dream car or truck, and suddenly, you’ve fallen on tough times and you’re having difficulty making those payments.  Maybe it’s time to consider a loan modification.  Your BBB® wants to provide you with information that may help in reducing your monthly payments. 

According to an article on bankrate.com, 1.9 million vehicles were repossessed in 2009.  Much of the reason was due to the downturn in the economy and higher energy costs.

If you’ve experienced a change in your economic situation, and you find that making those monthly payments are more difficult, then you may want to consider contacting your lending institution to see if they will work with you to refinance your vehicle.  Depending on your credit score, FICO, you may be able to negotiate a lower interest rate, but it may also mean that you need to extend the term of the repayment period.  Usually lenders are more interested in wanting you to keep your vehicle and to keep making those payments rather than repossessing it.

Bankrate suggests the following tips for consumers in that situation:

If you do qualify for a refinance, Bankrate suggests doing the following:

Even if your vehicle ends up being repossessed, you still may not be off the hook, even if your vehicle is resold.  There are cases where the repossessed vehicle may be sold for less than what you paid for it, and you’re still responsible for the difference.

If you need to shop for a business that offers a better option for you, check out bbb.org and look for financial institutions in your local area.  Remember to “Look for the Seal,” and Start With Trust® at bbb.org/evansville.

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Tom

Tom is Vice President for the Tri-State Better Business Bureau. In addition to answering the needs of our accredited businesses, Tom can be seen on WEVV providing tips for businesses and consumers. He also works closely with other local media outlets to keep our community informed of marketplace issues affecting our area.