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Can I Extend A Car Loan In Ayr?

Can I Extend A Car Loan In Ayr?

Deciding to extend a car loan in Ayr may seem like the ideal and logical option at the time, but that isn’t always the case. There are other options that may be better.

 

Our Ayr auto loan experts explain.

 

Can I Extend A Car Loan in Ayr?

 

Yes, you can. In certain circumstances and only if your lender agrees. An auto loan is a fixed amount over a fixed term with interest applied over that term. That’s the contract.

 

But some lenders are flexible enough to allow deviations from that contract such as overpayments or early settlement.

 

Some will also allow auto loan extensions. You’ll have to ask and provide a good reason why they should agree, but they might.

 

Extending a loan isn’t your only option though. There may be better options depending on the circumstances.

 

Alternatives to Ayr auto loan extensions

 

Depending on the situation, you may find one of these options works better for you.

 

Defer the loan payment

 

Loan deferments are also known as payment holidays and have had more limelight in the past year. As long as you agree it with the lender first, a deferral means you will not have to pay the loan for a set period of time, usually 3-6 months.

 

Some lenders will require you just make the interest payments while some will defer the entire payment. The amount of months you miss, along with the interest, is added onto the end of the loan.

 

If your situation is temporary and you think you’ll be fine in a couple of months, this may work out better for you.

 

Refinance the loan

 

If you’re a couple of years into your Ayr auto loan, you may be better off refinancing it. This would work if you’re in a longer term situation where you know you risk missing payments if you do nothing.

 

Refinancing just means paying off your current loan with a new one. You can use the amount you have paid off to reduce the amount you borrow, which will also lower the monthly payment.

 

You could also take the loan over a longer period to further reduce payments. This will cost more in interest over the term but is a viable option.

 

Sell the car

 

Your final option is less than ideal but may be necessary in more serious circumstances. You could sell the car to pay off the loan entirely. If you have money left over, you could buy a cheaper car to keep you mobile until your situation improves.

 

Check your loan paperwork for any early repayment penalties and if viable, sell your car and contact the lender to pay off the loan.

 

Talk to your lender before you take action

 

Whenever you have issues with a loan or think you may miss a payment or get into difficulty, it’s always best to discuss it with your lender beforehand. They may have other tools they can use to help you out that may make better sense.

 

Plus, they will always be more amenable if you talk to them before you miss a payment and not afterwards!

 

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

 

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