For most of our members, buying a new rig or car with cash is tough, so you have to take out an auto loan. Afterall, you need transportation to get to and from work. But because of the nature of the work, we know ironworkers often find their circumstances have changed. Making that monthly loan payment may have seemed manageable at the time, but it can become harder to pay than it used to. Worse yet, cars lose their value quickly and you may have put little to no downpayment on your car, chosen longer loan terms, or rolled over a previous vehicle debt into your current loan and you find you have what’s called “negative equity.” You owe more than your car is worth. Now what?
Don’t wait, contact us. Unlike a traditional bank, Ironworkers USA Federal Credit Union is a not-for-profit institution that understands your unique situation and has more flexibility to be creative with financing. Read on to see how we can help.
Refinance – if you have an auto loan through a different lender or a dealer (or even with us), Ironworkers USA Federal Credit Union may be able to offer you a new loan with a more favorable interest rate or extended terms to reduce your monthly payment.
Sell the Car – whether through a dealer or private sale, you may gain more equity in your car than trading it in. You can use the money you get (the equity) to pay off your current auto loan or buy a new car entirely with cash. If you owe more than the car is worth (negative equity), you’re still responsible for paying the difference between the sale price and what you owe. We can work with you, giving you the title so you can pay it off while making more manageable payments on the remaining debt.
Trade It In – get a lower-cost car that better fits your budget. You can use the equity you have in your current car as a cashless down payment for a more affordable one, depending on its value and your credit score. Be wary of dealers allowing you to roll negative equity into a new loan as that will just continue to build debt and your payments.
With all of these options, you can still have a car or truck, make your payments, and even improve your credit score so your choices don’t create bigger problems. We know managing finances can be complex and stressful, but it doesn’t have to be. We’re here to help you make sense of it all and make it work for you. Give us a call!
