Auto Loan Hardship Program: How to Get Help with Your Car Payments

If you are struggling to make your car payments because of job loss, illness, or an unexpected expense, an auto loan hardship program may help.

These programs are offered by many lenders to make it easier for people facing financial challenges to keep up with their car loans.
 

What Is an Auto Loan Hardship Program?

An auto loan hardship program is a type of assistance that lenders give to borrowers who are having trouble making their car payments. Depending on your lender and situation, options could include:
 

• Deferring payments: Skipping one or more payments now, and making them up later.
• Changing your payment due date: Moving your payment to a different day of the month that works better for you.
• Making reduced payments: Paying less than usual for a period of time.
• Modifying your loan: Changing the terms of your loan to lower your monthly payment.

 

Examples of Lenders Offering Help

Many lenders provide hardship programs:
 

• Alliant Credit Union: Reduced rates and payments for qualifying borrowers.
• Ally Bank: Deferments and modifications for those facing ongoing hardship.
• Capital One: Deferrals and due date changes available.
• CarMax: Extensions and payment accommodations provided.
• Chase: Change payment due dates or apply for payment extensions.
• Digital Credit Union: Deferments, interest-only payments, or modifications offered.
• PenFed Credit Union: Financial hardship programs available.
• Toyota Financial Services: Contact for loan deferment options.
• Wells Fargo: Payment adjustments, deferments, and due date changes.

Contact your lender directly or check their website to learn more.
 

Other Options If You Can’t Afford Your Car Loan

If a hardship program isn’t the right fit, consider these alternatives:
 

• Refinance your loan: Get a new loan with better terms to lower your monthly payment.
• Sell or trade in your car: If your car is worth more than what you owe, you may be able to sell it and buy something less expensive.
• Increase your income: Take on a side job or find other ways to make extra money.
• Borrow from family or friends: If someone you trust can help, make sure you have an agreement for payback.
• Voluntary surrender: You can give your car back to your lender, but this negatively affects your credit score. You may still owe money if the car sells for less than your remaining loan balance.

 

Bottom Line

If you can’t make your car payment, reach out to your lender as soon as possible. Lenders often prefer working with you to avoid default. Missing payments for more than 30 days can seriously hurt your credit score.

Monitor your credit to see how your payments affect your score and take action quickly to avoid bigger problems.

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