Need a Car Now and Can’t Afford Payments? Ways To Get Where You Need To Go
Life happens. And the life of cars happens as well. Yours might have broken down and need repairs, but not everyone has the financial means to take care of these. If you find yourself short of money and cannot afford to make your monthly car payment, are there any options for you?
Unless you live in an area with great public transportation, a car is a necessity. As a recent Santander survey found, a car also is a means to achieving financial prosperity. The survey found that 78% of respondents require vehicles and 74% of Americans are willing to sacrifice other budgetary items to maintain access to vehicles.
When purchasing a vehicle, he added, it is important for consumers to understand what options are available in terms of loans and lenders. “New car options aren’t the only ones that qualify for auto loans,” Jackson said. “Used-car loans and leases may be appropriate options that may fit a consumer’s current financial condition.”
First, as Experian explained, contact your lender.
“It might not seem like the best idea to let your lender know that your financial situation is a bit shaky,” wrote Ben Luthi of Experian. “But because vehicle repossession is usually the most time- and resource-intensive route when payments are missed, many lenders are willing to work with borrowers to get their payments under control. The sooner you get in touch, the more options your lender may be able to offer.”
Ask for a Deferral
Luthi noted that you can also request a deferral, which, if approved, would allow you to skip a small number of payments without penalties or fees.
Refinance Your Car Loan
According to Luthi, you may be able to get a loan with a longer repayment term than what you have left on your current term, which can help reduce your monthly payments.
Finally, if you can’t refinance, you might have to let go of your car.
“You could either trade it in to a dealership or sell it to a private party and buy a used vehicle,” Luthi wrote. “Note that trade-ins tend to be more convenient, but you’ll typically get more value with a private-party transaction.”
If You Can’t Pay for Repairs
Getting and maintaining a car is expensive and puts a strain on many Americans’ wallets. According to AAA, the average yearly cost to own and operate a new vehicle in 2022 was $10,728, or $894 per month. A FinanceBuzz survey found that 69% of drivers say they delay getting maintenance done even after they know it is due, while 58% say they could not afford an emergency car repair costing more than $1,000 right now.
But there are options that can help, such as financing auto repairs with a personal loan.
“And depending on the lender and whether you’re approved, funds may be deposited into your checking account as soon as the next business day,” according to Credit Karma. Another option is putting it on a credit card. But with the current ballooning rates, that might end up costing you much more.
What Are Alternative Means of Transportation?
If none of these options work for you, there are other ways to get you where you need to be. The first option that comes to mind for individuals suddenly finding themselves without transportation is ridesharing. Another option for someone in desperate need of a personally owned vehicle could get a cosigner for a loan, Earle said. “The underlying reasons for the inability to afford the down payment will be a factor in getting one, of course,” he said.
“These allow you to rent a car when needed, without the commitment of a long-term contract,” he said. “While the costs can add up, it’s often more affordable than full ownership. Look for deals or discounts to stretch your dollar even further.”
Finally, he recommended exploring peer-to-peer car rental platforms such as Turo. “Here, you can rent cars directly from individuals, often at lower rates compared to traditional rental companies,” he said. “It’s a flexible solution that lets you find a vehicle for your immediate needs without the commitment of ownership.”
Life can throw us unexpected challenges and one of them may be the need for a car when you are facing financial constraints. Whether it's work, family or essential errands, transportation is a necessity. But what if you need a car now and can't afford the hefty payments? In this article, we'll explore some creative and practical solutions to help you get where you need to go without breaking the bank. From affordable alternatives to financial assistance, everyone can secure reliable transportation.
Consider used cars: your cost-effective solution
When you are short on funds, buying a new car may not be a feasible option. Instead, focus on used cars. Used vehicles often come in at a fraction of the price of new, allowing you to find a reliable mode of transportation without straining your finances. When you search for "affordable used cars" or "budget used vehicles," you'll discover a variety of options that meet your needs without breaking the bank.
Explore car sharing services: Pay only when you drive
Car sharing services have grown in popularity in recent years and provide an excellent solution for individuals who occasionally need a car. Platforms like "Zipcar" and "Turo" allow you to rent a car on demand, paying only for the hours or days you actually use it. These services often include insurance and maintenance, eliminating additional costs and making them a cost-effective option for those who don't need the vehicle on a daily basis.
Choose public transport: Take advantage of the convenience and affordability
If you live in an urban area, public transportation can be a game changer. Buses, trains and subways offer a cost-effective way of commuting, especially when compared to the cost of owning a car. To find the nearest stations and routes, search for "public transport options near me". This solution not only saves money, but also reduces your carbon footprint and contributes to a greener environment.
Ride sharing and carpooling: Share the cost with others
Ride-sharing services like Uber and Lyft can be useful when you need a ride right away. However, costs may increase with frequent use. To make it more affordable, consider carpooling with colleagues, friends or neighbors who share similar routes. By splitting the fare, you can significantly reduce transport costs.
Check out local grants and assistance programs
Communities often have grants and assistance programs to help individuals facing financial challenges secure transportation. Search for "local transportation assistance programs" or "car subsidies for low-income individuals" to discover options available in your area. Nonprofit organizations and government agencies can provide financial assistance or guidance in obtaining a vehicle within your means.
Negotiate flexible financing options
If buying a used car is your preferred route, explore flexible financing options. Dealerships and credit unions may offer special financing deals or low-interest loans to accommodate individuals on a tight budget. such as "affordable car financing" or "flexible car loans" can help you find institutions willing to work with your financial situation.
When you desperately need a car and can't afford the repayments, don't lose hope. There are many alternatives available to help you achieve your goal without straining your finances. From exploring the world of used cars and using car sharing services to making the most of public transportation and finding local assistance programs, these options cater to different needs and preferences. By choosing the method that suits your situation, you can overcome your traffic problems and get where you need to go without the financial burden.
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