What to do about your car payments during the COVID-19 Pandemic
As the novel Coronavirus known as Covid-19 continues to spread rapidly and risk our everyday normalities, the Canadian unemployment rate has skyrocketed due to the ongoing crisis, leaving millions of Canadians unemployed through no fault of their own.
Even though the Federal and Provincial governments have provided aid for those who have been affected by Covid-19, many Canadians find themselves squeezed financially.
Depending on the size of a family, or the collective total of a household’s monthly expenses, the financial support programs in place may not be enough.
Refinancing Your Vehicle May Be An Option
What can be done to ease the stress of bills that are too difficult to pay at the moment?
Many families and singles are reviewing their finances to determine what can be done to lower their cost of living. Apart from rent and mortgages, vehicle payments are probably going to be the second-highest monthly expense for an individual or family.
There are currently many auto lenders that have developed relief measures in response to the pandemic affecting millions of Canadians, such as deferred payments on vehicles, which means payments will be payable at the end of the term with accrued interest.
However, another option may be to refinance your vehicle. Although this is mainly successful if your credit score is favourable or has improved since purchasing your vehicle, it is worth a shot to inquire about the possibilities, as there are many benefits to refinancing during such trying times.
- A lower interest rate
It is possible for interest rates to be significantly improved for a person working hard to build or rebuild credit, however, if it only improves by a small decrease in percentage, there is still great value in a decrease, as it can save a driver thousands of dollars in the long run.
- Loan term extensions
By refinancing and extending the loan term by several years, monthly payments can be reduced to a more affordable and overall comfortable payment obligation during a time when millions of Canadians have lost their employment income. Keep in mind that you may be paying more in total interest.
- Remove co-signer and gain independence
Refinancing is a perfect opportunity to remove a co-signer and grant more independence to a person who would not qualify for a vehicle loan without a co-signer.
There aren’t a lot of steps to take if one wishes to go this route. Simply contact your dealership to inquire if you qualify to lower your payments as well as lower your interest rate. Thet will more than likely take a look at your credit to determine if it is possible.
If you are, from there, your dealership should be able to go through the processes and help you acquire a more manageable payment arrangement.
Now, seeing if you qualify for a lower payment may not be enough for some individuals or families, especially when there are multiple vehicles in a household.
Further Assistance Through House Of Cars
As our economy and daily lives begin to normalize, getting back on your feet may require some rethinking of your finances. Even budgeting may be considered for most families while we are in recovery mode. There are a couple of programs that House of Cars offers that may help out further:
- If it is just not feasible to keep two or more vehicles at the moment, House of Cars can sell your unwanted vehicle for you with the Park and Sell program.
This program is perfect for people who simply do not want to deal with the hassle and stress of having to sell a car around everything else a busy day or family requires.
We will fully inspect your vehicle, detail it inside and out, market your car to thousands of daily online visitors.
That’s not all! We will also offer warranty and financing to your customer, so it makes the buy more intriguing to prospective buyers.
We will handle everything, so you can get back to doing the things that matter most. Just visit our website and fill out the form under Park & Sell, and we will be in touch with you soon.
- As our country continues to deal with the current pandemic, we simply do not know how long this will last, and how long our lives will be altered.
With kids home from schools, things in and around the House will have probably changed quite a bit.
Parents may find themselves having to take the kids with them to run essential errands, especially single parents, or those who have little family in the same city.
You may have even been looking into getting a newer, more fuel-efficient vehicle that will fit the whole family. House of Cars will sit down with you and discuss all your options that will fit into your new budget.
If you have questions or concerns, simply give us a call, and we will be happy to discuss options that will best suit your situation.
- As mentioned above, refinancing may be a great option to help lower months costs. If you have purchased your vehicle through House of Cars, be sure to give us a call or even contact us online for more information about refinancing.
We Stand With You, Alberta!
As our government begins to reopen the economy, remember to be safe out there and continue to stay the course by following the recommendations of our medical experts. It would be a great shame to undo the amazing work our Province has done so far.
Through collective efforts, we can continue to limit and mitigate the risk of spread, which is why House of cars has now opened to the community under regular business hours, and your health is our top priority during COVID. Frequent sanitation and social distancing measures are in place for your safety.
Here at House of Cars, our thoughts are with those who have been affected by Covid-19, and we wish you all the best as we get through these challenging times. Remember, we are always willing to have a chat to see what can be done to help or click here to contact us online. Stay safe, friends!
