Your car is bringing is you down. Sure, it’s a source of transportation you use to get from one place to another, but did you go above and beyond your means when making the purchase? Or maybe you experienced a drastic life event and can no longer afford the car you have? So, what do you do when your car is costing you? Here are a few options to consider:
- Sell your car or trade it in. With the money you make from selling your car you can pay off your loan. Keep in mind that cars depreciate with time and might be worth less than what you originally bought it for. In addition, consider trading your car in for something used – older and/or smaller. Remember, the original buyer of a now used car means that they got hit with the depreciation factor. You, on the other hand, end up with a more inexpensive cost for the car.
- Get rid of extra vehicles. It may not be the ideal situation, but having multiple cars is adding to the difficulty of affording both of them. If you live in a city with good public transportation, consider taking the bus, metro, or whatever is available. Ride sharing services are also extremely common these days and make for a great way of getting around. And if you have a bicycle or electric scooter, don’t forget about those options as well.
- Refinance your loan. If getting rid of your car is not an option, look into refinancing your loan. Some lenders allow you to extend your loan term or give you a lower rate. This is not the best option, but it is an option nonetheless, and should reduce your monthly payments.
- Consider the amount of maintenance your vehicle requires. Not all cars are created the way same. Some will hold up better than others over time, and some are known for their upkeep and maintenance issues. This is an important aspect of the research process before buying a car. You should know what you are getting into, what kind of attention it will require, and how much it could cost you down the road.
In the end, you are the one in the driver’s seat and the decision is yours. What will you do when you realize you can no longer afford your car? We hope these basic guidelines have been helpful. If you are still unsure of what to do, consult with a professional. Financial experts can help you figure out what the best option is for you and can guide you every step of the way.
