OTHER OPTIONS TO SETTLING A BILOXI LOAN OR LEASE PAYMENT
The COVID-19 pandemic has altered a lot of setups in the lives of different individuals. At this point, almost everyone would have something to say if asked how the pandemic affected or is affecting them. Take for example;
Joey Prince, the owner of an auto detailing business here in the U.S, says that he and his wife saw their income go to zero as the pandemic crept into the economy. Governors were forced to issue stay-at-home orders all over the United States in every town, including Biloxi, Mississippi. Therefore, their businesses were among the hundreds of thousands of companies that had to shut down.
That was not the only challenge that ugly development served them. As a family, they have three cars, all of which are financed through different money lenders. You can only imagine the anxiety that will set in for joey and his family at this time.
Fortunately for them, all the three lending firms proved to be understanding at this critical time because joey admitted that one of them approached him to talk about deferment options. After some times, he had to request for relief options, and they proved to be helpful as they all offered him several months of payment deferments
Since the pandemic started, many families and individuals in the United States have experienced difficulties similar to that of Joey Prince. With a massive decline in the strength of the U.S. economy, many families like the Princes suddenly became low on income; and top financing companies already have begun offering options to those customers. An excellent example of this is precisely what happened in the case of joey, whereby he got an extension on the loans he earlier acquired on his cars.
What to do in case you are having issues with an acquired loan
If you are one of the several individuals out there grappling with the payment of a loan at the moment, then this is for you. The primary thing to do is find the courage to call your bank or leasing company and try to negotiate an accommodation.
- Ask for loan deferment
If the loan description falls under the category of a traditional car loan, you can try to ask for a deferment. For many lending or leasing establishments, issues like this are handled on a case-by-case format. Therefore, you don’t expect them to agree to the extension you are proposing by default.
Reports have it that many lending and leasing firms in Biloxi and many other parts of the United States are already working with customers affected by the pandemic. This suggestion is not a reason for you to relax in your quest to level up the debt. Remember that you will still owe the money. In effect, the interest will continue to pile up. To this end, it is in your best interest that you pay it up within the shortest possible period, so the sooner you can get back to paying, the better.
If you are considering selling a car, it is not likely to be a plausible idea at the moment. This is because a slow economy is not suitable for the sales of a used car. You are likely to end up selling way below its real value.
- Try exploring the option of a lease transfer
In the case of a leased vehicle, a deferment means extra months of payment. You would agree that it can be tough to get done with a lease if you get hit with a financial crisis like the world is generally experiencing.
There is usually an option of lease transfer whereby you can get someone else to take responsibility for the lease. However, the reality is that it is not easy to get a messiah of that kind in the middle of an economic crisis. As much as the odds seem to be against lenders in this fix, they are encouraged to try and explore this option and stay hopeful that it is going to work for them.
- Look out for unique offers
Remember that it was mentioned somewhere along the line that leasing and lending firms try as much as possible not to generalize the cases of individuals who are not able to meet up with initial terms and conditions of the deal. Instead, they tend to give each one a unique hearing. Not everyone’s circumstances will be the same, and each financing company has a different way of helping customers.
Based on some metrics best identified by them, there’s usually a concession for some set of people. Taking GM financial as a case study in the U.S, it was discovered that they waived late fees incurred between March 1 and April 30. This is because the lockdown around that period profoundly destabilized the economy.
They were also generous enough to advise customers that it’s better to make payments behind schedule so that they would at least be able to avoid the consequence of taking up a deferment (one of which is the accumulation of interest).
- Look out for companies that help offload a lease
You can’t overemphasize the fact that getting out of a lease early for financial reasons is an uphill task. All things being equal, anyone entering into a contract is usually under pressure to finish making payments until the end of the term. The good news is this; some companies actually help people settle their lease. A good example is “Swap-a-Lease.” So, if you need their help and you have no problem with their terms and conditions of service, they could be your savior. You can perform a thorough search to see if companies of this nature are available in Biloxi.
Loans and leases can go wrong for several reasons. However, there is a way out most of the time. You do well to explore all the options mentioned. We are optimistic that one of these would work quite excellent for you.