## Key Payment Options to Avoid Repossession If you are struggling to make your monthly payments, contact Bridgecrest immediately to discuss the following potential solutions. ### Payment Extensions (Deferments) A payment extension, or deferment, allows you to temporarily skip one or more payments and move them to the end of your loan term. This provides immediate relief if you are facing a short-term financial hardship, such as medical expenses or a temporary reduction in work hours. * **How it works:** While you skip the immediate payment, interest continues to accrue on the unpaid principal balance. This means the total cost of your loan will increase, and your final loan payoff date will be extended. * **Eligibility:** Extensions are typically granted at the discretion of the lender and may require a history of on-time payments. A processing fee may also apply depending on state regulations. ### Changing Your Payment Due Date If your payment due date does not align with your pay schedule, you can request a permanent due date change. Aligning your payment date with your paychecks helps prevent accidental late payments and overdraft fees. * **How it works:** You can request to shift your payment date by a few days or weeks. Bridgecrest generally allows this modification if your account is currently in good standing and the new date falls within acceptable limits.
### Refinancing the Loan If your current interest rate or monthly payment is too high for your budget, refinancing may be a viable long-term solution. Refinancing involves replacing your current loan with a new one that has different terms. * **Refinancing with a third party:** You can apply for a refinance loan through external credit unions, banks, or online lenders. If approved, the new lender pays off your Bridgecrest loan, and you begin making lower monthly payments to the new lender. * **Refinancing requirements:** To qualify for a competitive refinancing rate, you generally need a stable income, an improved credit score since you first took out the loan, and a vehicle that meets the new lender's age and mileage requirements. ### Selling or Trading In the Vehicle If the monthly payment is permanently unaffordable, selling the vehicle may be the best way to protect your credit score from the damage of a repossession. * **Selling to Carvana:** You can request an online appraisal from Carvana to see if they will purchase the vehicle back. If the offer is higher than your remaining loan balance, Carvana will pay off Bridgecrest and send you the remaining equity. * **Handling negative equity:** If the vehicle is worth less than what you owe (often referred to as being "underwater" or having negative equity), you must pay the difference to Bridgecrest to release the vehicle's title to the buyer. ## Voluntary Surrender vs. Involuntary Repossession If you cannot afford your payments and no relief options are available, you may consider a voluntary surrender. * **Voluntary Surrender:** This involves contacting Bridgecrest and arranging to return the vehicle voluntarily. While this still counts as a repossession on your credit report, it can save you from paying the recovery fees associated with an involuntary repossession. * **Involuntary Repossession:** This occurs when the lender sends a repossession agent to recover the vehicle without your cooperation. This method adds towing, storage, and administrative fees to your outstanding balance.
In both cases, if the vehicle is sold at auction for less than what you owe, you may still be responsible for paying the remaining balance, known as a deficiency balance. ## Steps to Take If You Miss a Payment If you have already missed a payment, take these steps immediately to prevent the situation from escalating: 1. **Log In to Your Account:** Access the Bridgecrest online portal or mobile app to view your exact past-due balance, late fees, and account status. 2. **Review Your Budget:** Determine exactly how much you can afford to pay immediately and what you can realistically pay moving forward. 3. **Contact Bridgecrest Customer Support:** Call the customer service number listed on your billing statement. Explain your financial situation honestly and ask what specific programs are available for your account. 4. **Get Agreements in Writing:** If Bridgecrest agrees to a payment plan, extension, or temporary modification, ensure you receive written confirmation of the terms before assuming the agreement is finalized.
## Important Limitations and Considerations While seeking a solution, keep the following limitations in mind: * **Impact on Credit Score:** Late payments are typically reported to credit bureaus once they are 30 days past due, which can negatively impact your credit score even if you eventually work out a payment plan. * **Interest Accrual:** Deferring payments or extending your loan term increases the total amount of interest you pay over the life of the loan. * **No Guarantee of Approval:** Financial relief options are not guaranteed. Bridgecrest evaluates requests on a case-by-case basis depending on payment history, loan balance, and financial hardship documentation.
