3 ways to deal with the situation when you can not afford to continue paying for your car

For those who are struggling to keep up with their car loan payments, if you let the finance company take possession of the car, you will encounter many more problems that will haunt you for a long time. AS AUTO suggests three ways for those who are struggling to keep up with their car loan payments:

1. Adjust the debt structure by calculating and extending the repayment period to reduce the monthly installment payments, but this will result in a longer repayment period and slightly higher interest charges. However, this allows you to keep the car and will not affect your credit score.

2. You can transfer the contract to someone else to continue making the payments if the remaining balance is lower than the market price at the time and you can get the down payment back to use. However, if the outstanding balance is higher, you may have to sell the car at a loss. The downside is that finding someone to take over the contract may be difficult and time-consuming.

3. Sell to a used car showroom and have the shop pay off the debt. This is the easiest and fastest way since you don't have to do anything at all. The showroom will handle closing the debt for you in exchange for the car. However, you must hand over the car to the showroom immediately after the shop closes the debt. The downside is similar to the previous method, which means that if the purchase price is lower than the amount you still owe on the finance, you may have to use your own money to cover the remaining balance.

*The most important thing is not to let anyone else use the car without closing the account or changing the contract.