Between the time one subscribes to a car title loan and the end of the repayment, several tens of months generally elapse.


In the meantime, loan conditions may no longer be in line with what is being done on the market. For example, the average rate may have decreased, and as a customer, it is normal to want to enjoy a better rate. As such, the only solution is often to renegotiate its loan.


This practice can also be interesting when our financial conditions have changed and we want to either increase the amount of monthly payments or reduce it.


Only, if this is possible with a mortgage loan, a consumer loan like auto loan is generally incompatible with this kind of practice. However, there are some alternatives.

Auto loan: a non-renegotiable loan

Whether it’s an affected auto loan or a personal auto loan, this type of loan can not be renegotiated as is the case for a home loan. More broadly, this impossibility of renegotiation affects all consumer loans, in other words loans other than real estate loans.


So, even if the car no longer belongs to us, we can not update the loan. A situation sometimes difficult, especially for those who have difficulty repaying their monthly monthly payment.

Refer to his loan agreement

However, if renegotiation as such is not possible for a car title loan, this does not mean that one can not relax the amount of the monthly payments. In reality, everything depends on the loan agreement to which we have subscribed.


Certain terms of the contract may make it possible to release exceptional provisions when the customer has difficulties to repay his car title loan. The contract may for example include the possibility of reducing the amount of monthly payments by 5%, 10%, 15% and sometimes more. This reduction takes place over a fixed period of time and logically it has the consequence of lengthening the repayment period, and therefore increasing the final cost of the car title loan.


Similarly, certain auto loan agreements also allow the repayment of certain monthly payments. The number of postponements is often limited, and as a rule, this postponement can not exceed one month. But this solution is often enough to give a little air during financially difficult periods.


In any case, the first reflex when one wants to renegotiate his loan, is to address his creditor and discuss with him. By explaining why we want to reduce the amount of monthly payments, a solution can surely be considered.