What Happens If You’re 5 Days Late On Car Payment?

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Missing car payments can lead to a lot of stress and anxiety, especially if you’re not sure what the consequences could be. While it’s always best to make your car payments on time, sometimes life happens, and you may find yourself five days late on your car payment. So, what happens if you’re five days late on your car payment? Let’s take a closer look.

The Grace Period

Most auto lenders offer a grace period for late payments. This grace period typically lasts anywhere from five to fifteen days, depending on the lender. During this time, you won’t be charged a late fee, and your credit score won’t be negatively impacted. However, it’s important to note that if you miss the grace period, you could be charged a late fee, and your credit score could take a hit.

If you know you’re going to be late on your car payment, it’s a good idea to contact your lender and let them know. They may be willing to work with you and offer an extension, especially if you’ve been a good customer in the past.

Late Fees

If you miss the grace period, you can expect to be hit with a late fee. Late fees vary by lender, but they can range anywhere from $25 to $50 or more. These fees can add up quickly, so it’s important to make your car payments on time to avoid them.

If you’re struggling to make your car payments, it’s important to reach out to your lender and let them know. They may be able to work with you to come up with a payment plan that fits your budget.

Repossession

If you’re consistently late on your car payments or you miss several payments in a row, your lender may decide to repossess your vehicle. Repossession is a last resort for lenders, but it’s always a possibility if you’re not making your payments on time.

If your car is repossessed, your credit score will take a significant hit. Additionally, you’ll be responsible for paying any fees associated with the repossession, including towing and storage fees. If you want to get your car back, you’ll also need to pay off the remaining balance on your loan.

Repossession is a serious consequence of missing car payments, so it’s important to make your payments on time if you want to keep your vehicle.

Conclusion

Missing car payments can have serious consequences, including late fees, credit score damage, and repossession. If you’re five days late on your car payment, you may still be within the grace period, so it’s important to contact your lender and let them know you’re going to be late. If you miss the grace period, you can expect to be hit with a late fee, and if you continue to miss payments, your lender may decide to repossess your vehicle.

If you’re struggling to make your car payments, it’s important to reach out to your lender and let them know. They may be willing to work with you to come up with a payment plan that fits your budget. Remember, making your car payments on time is crucial if you want to keep your vehicle and maintain a good credit score.