Brian Moody of Edmunds.com has the three steps to take if you can’t afford your monthly car payments:
1. Contact your lender and ask them if you can defer a payment of if they can lower the monthly payment. Depending on your payment history and other factors, they may say yes.
2. Refinance the car loan to bring down the monthly payment. But be aware that you may end up paying a higher interest rate over a longer period of time.
3. Compare the amount you owe on the loan to the car’s true market value. If it’s higher than the amount left on the loan, sell the car and pay it off with cash.