There has been some good news coming out of the lending industry of late. Car loan originations are increasing and the number of delinquencies are moving downward. Even when news is generally good, there can be a downside. While overall delinquencies are down, the number of people seeking assistance from their lenders to prevent delinquencies is on the rise.
Unemployment still remains a major problem for consumers. With little or no income, some consumers are falling behind on payments. To prevent a repossession financial advisers are urging consumers to act quickly problems when arise. Lenders are not in the business of owning a fleet of cars and may be willing to explore options to prevent a repo, whether that means a lower interest rate, interest only payments for a short period, or restructuring a loan so that back payments are added on the end of the note.
The key to receiving assistance with a subprime car loan and avoiding repossession is to communicate with your lender as quickly as possible. Hesitation could lead to you waking up one morning only to discover that your car is gone.