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Can you extend an auto loan in Grimsby?

Can you extend an auto loan in Grimsby?

Extending an auto loan isn’t something you should do lightly but it can be a viable way to make it more affordable or to help you when times are tough. Extending the loan isn’t your only option though. It may not be the best option either.

Most auto loans are for a set period of time with fixed payments each month. That doesn’t mean you cannot change those conditions. As long as the lender agrees.

Extending your Grimsby auto loan

As we just mentioned, an auto loan is typically for a fixed period with a fixed amount each month. Many loans are flexible to allow for overpayment, early repayment and sometimes, extensions.

Times have been tough over the past 15 years or so and lenders have tried to move with the times. Financial products are much more flexible than before and while there are still lots of terms and conditions, you do have much more freedom.

If you need to extend your auto loan, you should first check your paperwork. If you have the freedom to overpay or settle early, the lender may be flexible enough to allow extensions.

Your next step will be to talk to them and discuss your situation. Explain why you need to extend the loan and explain the situation as much as you can. It will then be up to the lender to decide if an extension is appropriate or not.

There are other things you can do instead though.

Alternatives to extending your Grimsby auto loan

If you need to save money, there are other things you can do besides extend the loan.

Take a payment holiday – If your situation is due to the pandemic, there is assistance to help, including payment holidays. If your situation is nothing to do with the pandemic, payment holidays are still a viable option. Just remember, you’ll still accrue interest during the holiday!

Refinance the Grimsby auto loan – If you’re a year or more into the loan, you could refinance. Depending on how much the car is worth and how much you have paid off, there may be scope to get a new, cheaper loan with a lower monthly payment.

Transfer the loan – While less than ideal, transferring the loan to a family member who can afford it is also an option. They will need a good credit score and your lender will need to agree but it’s another option to consider.

Sell the car – If you have another car or could use public transit, selling the car is also an option. It may only be temporary but it could be enough to pay off the loan altogether and give you the breathing space to sort everything out.

You have several options at your disposal if you’re having trouble affording your auto loan. Extending is one of those options but it isn’t the only one. Depending on your situation, there may be a cheaper or better option open to you.

Only make a decision once you have explored all options and go from there.

If you need help or advice on anything to do with car loans in Grimsby, contact Car Nation Canada today, we can help!

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