Disputing and Negotiating Strategies on Auto Loans
Repossession. The word repossession can put fear into a person’s heart. If you are facing a possible repossession of your car, you may be wondering where to turn … what you can do.
If you have fallen behind on your car loan payments, you know that this situation is having a serious effect on your financial health. A past due car loan can be a major reason why you do have bad credit today. Indeed, many people who have bad credit are in such straits because of the fact that they have delinquent automobile loans. If you are in such a position, you will want to consider what disputing and negotiating strategies are available to you today when it comes to dealing with your delinquent auto loan.
Seeking an Interest Abatement
One step that you can take when it comes to negotiating in regard to your auto loan and the balance on your auto loan is that of seeking an interest abatement. In some instances, if an auto loan card is past due, the interest rate on the loan likely has become rather high. You actually can save a good deal of money on interest associated with your auto loan. In addition, you likely are facing many penalties and late fees on top of it all.
Many auto loan lenders are interested in working with their customers to assist them in bringing their accounts into a current state. This can be beneficial to both you and the lender. You get to keep you car and the lender does not have to hassle with a repossession. Moreover, you have taken a significant step towards dealing with a bad credit history and a bad credit score.
Seeking a Lowering of Interest Rates
When it comes to resolving bad credit history and bad credit score problems, dealing with past due automobile loans can be an important element of the overall process. In this regard, many auto loan lenders have special programs for their customers who are having problems in keeping their accounts current. In this regard, some auto loan lenders offer drivers and car owners the ability to obtain a lowering of their interest rates on their auto loans for at least a set period of time. Provided you continue to make scheduled payments in a timely manner in the future, you are able take advantage of the lower interest rates on your auto loan, saving you money over time.
Negotiating a Grace Period
Repossession is an expensive process for an automobile loan lender. The lender really will want to take at least some reasonable steps that might allow it the chance to avoid the cost in time and money of having to repossess your auto.
One reasonable plan that some auto loan lenders are willing to consider and accept is a payment grace period. A lender might allow you a period of three months in order to bring your payments current. During this time period, you need only deal with past due balances and not any new payments -- no new payments will come due during that grace period.