How does loan tenure extension work for used car loans?

If you find that repaying your used car loan in monthly instalments is becoming a hassle and leading to financial strains, then look at how you could potentially extend the loan repayment period to make those monthly payments smaller and repayments easier to produce in your financial calendar. To do this, your first step is to contact your used car lender and explain that you need more time in order to repay your loan. In most cases, the lender will take into consideration your previous repayments along with your financial position before they agree or disagree to your request.

Extending the repayment of your loan will help ease the burden of monthly repayment, but it also means that your total loan interest repayment will be larger. Some lenders may charge a fee for amending a loan. So it is recommended to ask the lender whether your loan fees will incur a fee for changing the repayment time-period on your loan. Before you agree to anything, consider the benefit of lower monthly repayments versus the increased cost of having the loan in total.

If you find that you are struggling to make current loan repayments, then discuss with your lender. Lenders are usually well aware that sometimes borrowers will have difficulties meeting their financial obligations. Lenders do generally appreciate proactive borrowers who are willing to discuss their situation openly and wish to avoid defaulting on all the repayments.