With the recent financial crash that has hit the United States and the global stock market, most of us are left scraping for ways to add more to our dwindling savings account. In addition to this financial rut, our employment sector is also facing its own issues as layoffs continue, which leaves a number of households with less means to sustain their lifestyle.
It is during these times that we all look to our finances and analyze what can be streamlined or taken out in an effort to maintain our financial stability. For those with existing car loans who have not foreseen the current recession, there are still ways to avoid having your car repossessed. Here’s how:
Look Into Refinancing your Current Auto Loan – When most consumers are facing difficulties in fulfilling their monthly loan obligations, car refinancing becomes the lifeline that can save them from losing their beloved automobile. Through financing, you can transfer your outstanding loan amount to another company with significantly lower interest fees and monthly premiums. Experts advise indebted consumers to look into their eligibility for car refinancing as a means to save extra money while at the same time allowing you to be able to continue paying off your loan.
The procedure towards refinancing your loan is fairly simple. With the internet and an auto loan calculator on hand, you can begin the process of comparing rates and completing applications. When approved, your outstanding loan is automatically paid making way for a new loan with a more affordable payment schedule.
Assess Your Current Rate – If you are one of those individuals looking to acquire an auto loan even in light of these trying times, then it is best that you take time out to carefully analyze loan costs plus insurance and gasoline expenses. This will allow you to make an informed judgment on whether you can truly afford to spend on a new car at this time, and if so, how much you can save due to better gas mileage and different financing.
Buy Your Car Straight From the Manufacturer – The usual route for purchasing a car is through a dealer. While this may be less of a hassle as they do most of the leg work for you, you need to keep in mind that dealers also work under a profit paradigm. Their rates are often inserted with hidden fees that go back to them. As your car moves from the manufacturer on to the dealer, more costs are put on top of the principal amount which you can save if you opt to purchase your new car directly from the manufacturer themselves. In addition, some manufacturers also offer additional incentives, especially on cars that are slow moving. If you purchase a vehicle through a dealer, you won’t be able to enjoy this savings.