Have you missed a VW payment recently? There may be questions swirling in your head regarding this past-due payment, like, “Will there be a penalty fee?” and “Will this affect my credit score?” The finance team at Heritage Volkswagen Catonsville can assist you to help manage timely payments.
Missing One Payment
A single late payment isn’t a major cause for alarm. If you simply overlooked it, make the payment right away; depending on the terms of your loan, there may be a minor penalty fee. To avoid this scenario in the future, consider setting up automatic payment.
If you missed the payment due to financial hardship, contact the dealership to inquire about a loan deferment. This allows the missed payment to be moved back to the end of the term, and you typically only have to pay the owed interest for that month. If this is your first missed payment, and you contacted the dealership, the penalty fee may be waived.
Will My Car Be Repossessed?
Your car will not be repossessed due to a single missed payment. Warnings of repossession will only come into play after multiple and consecutive missed payments, usually three or more fees past due. This is also when the missed payments are reported to the credit bureau and may negatively impact your credit score.
If you foresee this may be an ongoing problem, contact the dealership on how to move forward. Possible solutions include refinancing or trading in your vehicle for a more affordable model.
Manage VW Payments at Our VW Finance Center in Baltimore, MD
You have options if making timely payments is going to be an issue. In any case, communicate your intentions with our finance department in Heritage Volkswagen Catonsville. We’ll work with you to establish a manageable budget — see us today!
Categories:
Finance