Help with car payments and auto loan assistance programs.
Help with car payments is usually not from a program that pays car loans directly, but there are options if you are behind on your auto loan, facing repossession, or need time to make future payments - stabilize your budget. The most common help is a hardship plan from the lender, a temporary deferment, a modified payment schedule, or nonprofit counseling that helps you negotiate terms and reduce related costs. Local charities and community action agencies are more likely to help with related transportation needs, such as repairs, fuel, or getting to work, than to make an auto loan payment.
Below you will find steps to take to reduce or maybe temporarily pause payments, avoid added fees, and ask for a workable plan before the account goes to repossession. If you need your vehicle for work, job training, school, or medical care, mention that when you contact a lender or local nonprofit agency because it often affects what options they will discuss.
The sections below cover lender hardship options, nonprofit counseling, as well as repossession prevention steps. Freeing up money for paying an auto loan is also an option, so you will also find programs that help with related costs such as repairs, fuel, and insurance that can free up money for your monthly payment.
Prepare in advance and have documents ready. Our guide on the 3 main steps to take when applying for any type of help also explains this. The documents needed include, but are not limited too, items such as proof of income, job loss letter, budget, proof of insurance, registration, proof vehicle required for work, and repossession notice if received. Note each agency, or lender, may request other documents as needed, but those are the most common.
Financial assistance options for car payments / auto loans
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Community Action Agencies sometimes help with transportation needs when a vehicle is required for employment or training, but services vary by county and available funding. Even when an agency cannot help with a car payment, it may help with related needs such as emergency repairs, fuel assistance, or referrals to local transportation programs. The main goal of these non-profits is to help families become self-sufficient over the mid to long term. Some community action organizations will offer applications to government grants that assist with car payments. Learn more about all the various community action agency programs.
Non-profit credit counseling agencies will offer resources that may help with car loan payments. In general, the counseling is free for low income clients. There are national and regional agencies that are certified by the government as non-profits. Counselors from a free credit counseling organization near you may help you contact the lender, request a hardship option, and organize a budget so missed payments do not spiral into repossession.
If you are facing repossession, contact the lender immediately and ask what specific action stops the repossession process. Depending on the lender, options may include a short-term deferment, reinstatement amount, payment extension, or a formal hardship plan. If you cannot reach a workable plan, use a local referral service such as United Way to locate nonprofit counseling or financial assistance for car repossession. In addition to that, more “regular” financial help may be an option as it may reduce other bills so you can keep the payment current.
Most banks, credit unions, automobile dealerships and lenders offer auto loan hardship programs as well. In general, they work with the borrower to help them find some form of payment solution. This may include deferments, term extensions to lower the monthly payment, interest-rate reductions in limited cases, or waiving certain fees. Learn more about steps to take in order to lower car payments.
When an automobile loan is upside down, some of the programs runs by these banks and lenders may be able to assist. However they tend to be targeted at helping more traditional borrowers save money by lowering their interest payments or extending payment terms on their car note. If you owe more than the vehicle is worth, ask the lender what options exist to extend the term, reduce the payment temporarily, or restructure arrears to avoid repossession as it may be possible to get help with upside car loans.
Ending the loan is usually a last resort. Selling the vehicle, voluntary surrender, or negotiating a settlement may reduce immediate pressure, but you can still owe a remaining balance after the vehicle is sold and your credit can be damaged. If you are considering ways to get out of a car loan., speak with a nonprofit counselor first and ask the lender for the full payoff amount and any deficiency rules in your state.
Some borrowers may be using high risk car title loans. Those individuals will tend to need assistance in paying them off or in refinancing. There are counselors who can provide advice on how to do this and there are also alternative forms of financing available. Get information on companies that offer assistance with title loans.
 The Consumer Financial Protection Bureau provides guidance on auto loans, including how to request hardship options, what to ask when negotiating with a lender, and how to identify predatory practices. https://www.consumerfinance.gov/consumer-tools/auto-loans/.
Some borrowers consider using a credit card to bridge a short gap, but this can be expensive and may worsen long-term debt if interest accumulates. If you are considering it, compare the total cost to a lender hardship option first and avoid creating a second debt problem while trying to solve the auto loan. Find more details on using credit cards for car payments.
Help with related expenses, including repairs, gas or insurance to free up money for the loan
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If you cannot find direct help for the car payment, reducing other transportation expenses is often the fastest way to keep the loan current. The resources below focus on repairs, fuel, insurance, and other costs that can free up money for the monthly payment and help you avoid repossession.
Assistance can be offered for gasoline payments, which can be combined with auto loan help from the organizations above. A number of charities offer vouchers, gas cards, or limited amounts of financial help to pay for gas for a vehicle if the person struggling with their loan needs their vehicle for work. It will generally only be a small amount of fuel provided, if the nonprofit even provides this support. Learn more abut how to get free gas for critical travel needs.
Car repair assistance programs, including help with past due auto repair loans, can be offered too by some organizations. These resources that help with car repairs can pay for a portion of truck or auto repairs (if they use their car for work or job training). Everything from grant money to charities will help pay to fix a car, however the availability of funds, the application process and programs vary widely. Then, in effect, any money saved on repairs (by using the help of another agency) can then be used to pay any debts or notes you have on your car.
Free cars, though not common, are available from some local and national organizations. Hundreds of national as well as local charities, churches, and government social service agencies try to provide free cars (or affordable auto loans, etc.) for people who are in a short term crisis and that need transportation in order to get to work. Of course most of these have only a small amount of vehicles available to give out with a strict application process, but learn more on where to look for a free car given away from a local or nation group.
- Ways to Work car loans are mostly focused on helping someone pay for a vehicle but they can also sometimes be used as a form of assistance for existing payments. Or the money can help pay for auto repairs or other expenses. The Ways to Work car loan programs are available in some communities for income qualified people.
Traffic ticket assistance programs sometimes available. There are some charities and government programs that can assist with the legal or financial aspects of unpaid parking tickets, court fines, speeding tickets, and related costs. Attorneys can even provide free advice to qualified low-income families for various automobile violations (along with loans). Find how to get help with traffic tickets.
Impound fees can sometimes be paid. Low income families or people with little or no money that need their car for work and that lost their automobile due to registration issues, tickets, or a civil legal matter may be able to get help from a non-profit, though the programs vary widely in availability and funding levels. Find more details on how to get help paying for impound expenses.
Find tips that may help you save hundreds of dollars on car insurance expenses. There are things to do that may be as simple as shopping around for a new policy. Lower payments, or direct financial help for insurance (while not common), is but one more way to reduce your monthly payments to free up money for paying an auto loan.
If you want other ideas, suggestions, or to ask a question (or help someone else) try our forum discussing auto loan payment assistance. While it can be challenging to get help for a car loan, there are some resources that can assist. The forum has experience, tips, and requests from people across the US who are struggling, and need help, with the car payment.
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