Car Payments and the COVID-19 Crisis: What Your Car Company Is Saying
If you’re worried about making your car payments right now, know that you’re not alone. According to a recent Stride survey, car payments ranked in the top five most important expenses right now.
If you think you may miss car payments due to financial hardship right now, the most important thing you can do is reach out to your lender. Missing payments may result in delinquency (outstanding debt) or repossession (when your car is taken back due to missed payments), which will be bad for your credit in the long run. By contacting your lender, you’re opening the communication channel to a possible payment extension or deferment (meaning your payment due date could be postponed)!
What Exactly Is an Auto Loan Deferment?
A loan deferment is an agreement between you and your lender that increases the length of your loan. For example, say you have a 12 month payment plan; a 3 month deferment would essentially make it a 15 month loan. In response to COVID-19, many car companies may make loan deferments possible. While you still may be responsible for any interest adding up during the deferment time, you are unlikely to see an impact on your credit. As long as there is an agreement between you and your lender, no delinquency label will be added to your credit!
What Your Car Company Is Saying Right Now
Several car companies and some of the biggest lenders have all announced measures to help folks make their car payments. Many in-person offices and dealerships are closed due to shelter in place orders, so starting with a phone call or web/mobile support request may be your best bet right now!
Here is a list of the top automakers with some useful links to their COVID-19 response pages and what they’re offering in the way of financial assistance.
BMW is urging customers to reach out to BMW Financial Services and keep in contact through MyBMW where you can inquire about assistance for any COVID-19 related financial issues.
FCA: Includes Fiat, Chrysler, Dodge, Jeep, Ram and Alfa Romeo
The two biggest lenders for FCA are Chrysler Capital and Ally Financial. If you have a loan or lease with this group of car makers, you can submit support requests via the links above. They have customer support agents ready to discuss options for those facing hardships right now.
Head to Ford Finance or Lincoln Finance and log in to your Account Manager to report financial hardships due to COVID-19. Due to high call volume, their support team is requesting folks start with their online tools before calling!
General Motors: Includes Chevrolet, Buick, GMC and Cadillac
GM has set up some incredible resources at GM Financial including a hotline for those experiencing hardships right now. You can text INFO to 53721, send a message through the GM Financial mobile app, or contact the GM Financial Customer Experience team at 1-800-284-2271. To speed up the process, be ready with your account information and be sure to allow notifications on the mobile app so that you know when an agent responds to you.
Honda and Acura: The Latest News
If you have a loan through Honda Financial Services or Acura Financial Services head to Honda's COVID-19 Response Page where you can find the latest information on what they're doing to help their customers right now.
They are offering to help customers with payment extensions, deferrals, and late fee waivers.
If you are a current Hyundai Motor Finance customer who just lost your job or are facing a medical hardship, you may be able to defer payments up to three months.
If you are a new Hyundai customer you can take advantage of the Assurance Job Loss Protection, which will help new owners who lose their jobs and have purchased or leased vehicles between March 14 to April 30, 2020 through Hyundai Motor Finance.
Head to Kia Finance where you can possibly receive a payment deferral if impacted by COVID-19 related hardships. Reach out to their customer support number here: 1-866-331-5632.
Chase in partnership with Mazda Capital Services is offering loan and lease payment relief and assistance for those nearing the end of their lease.
If you are a current customer with an auto loan through Ally Financial Mitsubishi you may be eligible for up to 120 days of payment deferments. Follow this link for more information on Mitsubishi's COVID-19 response.
Nissan NMAC Finance has opened a direct customer support line (1-800-456-6622) if you need to discuss payment relief related to COVID-19.
Toyota Financial and Lexus Financial are offering direct support regarding payment relief and lease end support through their respective hubs.
Wells Fargo, Capital One, and Ally Financial are huge lenders that are offering varying levels of support. Visit their pages to reach out to their customer assistance lines!
Remember, if you’re worried about making your car payment, talk to your lender! Deferments and payment plans may cost you some extra interest in the short term, but it could save your credit score in the long run and give you some much needed financial breathing room.
For additional COVID-19 resources, please visit our guide here.