Speak with a Loans Canada representative today and learn how you can refinance your car loan and save. Call us today at:
1-877-995-6269
Having a car has become a necessity these days, but coming up with the funds to cover the price tag on a vehicle can be tough without the help of a car loan.
BMO is among the many big banks that offer car loans, but part of the deal is that you’ll need to make your regular installment payments on time each billing period.
But despite your best efforts, you may miss a car payment or two, especially if you come upon hard financial times. The question is, what will happen if you fail to make a car payment to BMO on time?
Let’s dig in a little deeper to find out.
The outcome of missing a car payment with BMO depends on how long overdue your car payment is:
If you’re late on your car payment by less than 30 days since its due date, you’ll likely hear from BMO by email, phone or mail reminding you of your payment. You may also be charged a late payment penalty fee.
However, it’s also possible that you may have a grace period as part of your loan contract, which means you’ll have a few extra days to come up with the payment after you’ve missed the official due date without penalty. But, you may be slapped with late payment penalty fees once this grace period expires.
Do note, that whether your BMO car loan payment is considered late or missed depends on how BMO defines it on your loan contract.
If your missed payment is more than 30 days past due, the consequences could be much more severe than a simple late payment penalty, depending on how long your BMO car loan payment is overdue.
Payments that are over 30 days late are typically reported to the credit bureaus. When this happens, they’ll make a note on your credit report that your payment has been missed, which can have a negative impact on your credit scores.
Since your car collateralizes your auto loan, BMO has the right to repossess it if you fail to make your car loan payments on time. Lenders place liens on cars until the loan is fully repaid, which means you don’t technically own your vehicle until the loan is paid off in full. As such, if you continue to miss your car loan payments, BMO can repossess your car.
If you’re having trouble keeping up with your car loan payments, BMO may offer some options to provide you with some financial relief so you don’t default on your car loan:
If you’re concerned that you might miss your car loan payment, BMO allows borrowers to defer up to 2 car loan payments per year. This is a good option if your missed payment is just a one-time financial hiccup.
Keep in mind, however, that you’ll eventually need to make up for the payment. Further, interest will continue to accrue, so you may wind up paying a little more overall.
Those who still need some financial help after their deferral period ends may still find some financial relief from BMO. If you’re still having trouble keeping up with your car loan payments, speak with a representative from BMO to see if they’ll be willing to work out an arrangement to modify your current loan contract that will fit better within your current budget.
| Phone | 1-877-225-5266 |
| In-Person | Find A Branch Near You |
| You can message a BMO representative with any questions you may have by signing into your online BMO account under “my messages” |
Want To Lower Your Car Payments?
Speak with a Loans Canada representative today and learn how you can refinance your car loan and save. Call us today at 1-877-995-6269 or click here.
Note: Program is currently not offered in Quebec.
Refinancing a car loan means taking out a new loan with different terms and paying off your existing loan. Essentially, you’re replacing your old car loan with a new one, ideally with a lower interest rate to help you save money. You may also choose to extend the loan term to give you more time to pay off the loan, which may help reduce your monthly payments.
It’s possible that BMO may allow you to refinance your car loan, however, you’ll need to speak to a customer representative. If BMO agrees, that means BMO will buy your outstanding debt, then offer you a completely new car loan contract that you will be bound to.
There are several perks to using BMO to take out an auto loan, including the following:
BMO’s car loan program is offered through car dealerships. When you purchase a vehicle, your dealer will verify your eligibility for a car loan. Both new and used vehicles can be financed with a BMO auto loan.
BMO’s auto loans can be summarized as follows:
Before you apply for a BMO car loan, take some time to compare lenders and rates to make sure you’re getting the best deal. Here are 5 simple steps to apply for a BMO car loan:
If your financial situation hits a snag that makes it very difficult for you to make your BMO car loan payments on time, your best bet is to get in touch with BMO right away. Communicate your troubles with BMO and work out an arrangement that will prevent you from defaulting on your car loan. If you miss your car loan payments, you could face serious repercussions if you don’t make good on what you owe.
Lisa has been working as a personal finance writer for more than a decade, creating unique content that helps to educate Canadian consumers in the realms of real estate, mortgages, investing and financial health. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. Lisa is very serious about smart money management and helping others do the same.
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