Car finance is a quick, easy way to get on the road but what if your contract ends during coronavirus? How might you ensure you still get any favoured ‘end of term’ option? How, for example, might you return a car if your dealer is shut? How might you make an optional final payment to a finance company to own it outright? How might you swap to a new car? And, what might you do if coronavirus employment issues make it difficult to manage payments?
Car finance end of term options during coronavirus
It is difficult to give generic answers to such questions as policies vary between companies. So, the key is to contact any relevant party to establish your specific options. Even if the company’s workplace is closed, you might be able to contact staff by phone, e-mail, or online chat. A lot of people now work at home.
Perhaps, for instance, your dealer’s showroom is closed but you want to return a vehicle. If so, any associated workshop might still be open for emergency repairs. It might also have a delivery and collection service (as is common). So, it might be possible for someone to collect your car at the end of the contract. Just remember to disinfect it first to minimise any spread of the virus.
Alternatively, maybe you want to make an optional final payment to own the car outright. The finance company is likely to facilitate as it wants money. Perhaps it can be transferred online. Perhaps documents can sent via the post, signed if required, then returned.
Note too that the dealer might let you order a replacement vehicle remotely. However, expect delivery to take longer than normal.
Car finance payments cannot be met during coronavirus
So, what if money is tight? What if coronavirus employment issues make it difficult to manage repayments? Act early – before the moment of final crisis – to minimise hardship. In other words, contact the finance company before you default on payments and damage your credit rating. The finance provider might be keen to help. It is not in its interest for you to default on the payments.
The solution might be to extend the length of the car finance plan in exchange for smaller, more manageable, monthly payments. Good luck.
