How to Deal With a Car Loan

Car loans are a regular part of life for most Americans. The reason for this is that most people cannot afford to pay for a new car outright and must get a loan. Auto loans are typically about four to six years long. It is better to just buy a used car outright than to buy a new car that you can't afford; but if you already have a car loan, you must find a way to deal with the expense.

Instructions

1

Pay extra money on your car loan each month if you can, which will allow you to pay off your loan early and reduce your interest payments. Pay your bill on time too, to build good credit.

2

Keep your car in good shape. Regular maintenance checkups will make your car last longer and cost less over the long run.

3

Consider selling your car. Find a seller who is willing to take over the loan payments or to pay for the loan in full. Most cars quickly become worth less than what the owner owes. You may even have to pay something to have your car sold.

4

Consider taking the car off the road for some time to save on insurance, gas and maintenance. Find another mode of transportation that costs less than the money you are saving by parking your car.

5

Refinance your car loan to get a lower interest loan. Your current loan company is not likely to refinance you, so find another lender.

6

Turn your car over to the company that owns the loan, if you can not afford it at all. You may still have to pay the difference between what the car is worth and what you owe.