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I missed an auto loan payment in Waterloo, now what?

I missed an auto loan payment in Waterloo, now what?

It isn’t a situation anyone wants to be in but it happens. Life is busier than ever and we have more going on and less free time, which means things can get missed. So, what happens when you miss a Waterloo auto loan payment?

We always recommend setting up automatic payments for auto loans but if that ship has already sailed, what do you do?

What to do if you miss a Waterloo auto loan payment

The first thing to do is not panic. Yes, it’s serious but it isn’t irreversible. You need to take action quickly but there is no need to panic or get yourself worked up.

Work out what went wrong

If you have automatic payments set up, what happened? Did you not have sufficient funds to make the payment? If you don’t have automatic payments, did you just forget? Did something else happen?

If you missed your Waterloo auto loan through ill health, COVID or something else, you have a valid reason for missing it but you still need to take action.

If it’s a funds issue, you’re going to need to find the money from somewhere as you have to make that payment.

Decide on your next steps

What you do next depends on why you missed the payment.

If you can afford the payment, you need to make it right away.

If you cannot afford the payment, you need to take action. You can ask your lender for a single payment deferment which adds the missed payment to the end of the loan. This is a one time thing and you will still likely have to pay the interest for that month but it will be less than the complete payment.

If affordability is a one-off, this should be enough to remedy the situation.

If affordability is ongoing, you are going to need to figure out your options. They can include selling the car, refinancing to a cheaper loan, taking a 3-6 month payment holiday or transferring the Waterloo auto loan to someone else.

Exactly what option you choose depends on the situation.

Contact the lender

Once you have the situation clear in your head, you need to take the initiative and contact the lender immediately. Discuss the situation, explain what happened and discuss next steps depending on where you are.

If you can make the payment, make it there and then.

Then discuss what you’re doing to prevent it happening again. If you come up with a plan, your lender is much more likely to give you a break.

Your lender will then decide what to do depending on the situation and how convincing your story is. They may let it pass on the condition you don’t miss any further payments or they may not.

Prevention is always better than cure but life isn’t over if you miss an auto loan payment. It is a serious situation but it isn’t terminal and it isn’t the end of your credit score.

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

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