Cars are incredibly expensive and are one of the biggest purchases you’ll likely ever make, aside from a house. Luckily, car loans are available from CIBC to help make these big-ticket purchases possible if you don’t have the resources to cover the cost in full.
But what happens if you miss a car payment? How will CIBC deal with missed payments?
Read on to find out more about what could happen if you miss a car loan payment with CIBC, and what options you may have if you’re struggling to meet payment due dates.
What Happens If You Miss A Car Loan Payment With CIBC?
Missing a car payment with CIBC could result in a variety of repercussions, depending on how much time has elapsed since the payment due date.
CIBC Car Loan Payments That Are Less Than 30 Days Late
If your CIBC auto loan payment is less than 30 days past due, you’ll generally get a phone call and will be asked to make up for the missed payment as soon as possible.
Depending on the terms of your loan contract, you could be slapped with a late payment penalty fee, plus interest for every day the payment is overdue.
CIBC Car Loan Payments That Are More Than 30 Days Late
If your car loan payment is more than 30 days late, the penalties will become more serious. Here are a couple of consequences you could face as a result of a payment that’s more than 30 days overdue.
Your Credit Score May Take A Hit
CIBC will likely report your missed payment to the credit bureaus. When this happens, your credit report will reflect the missed payment. This can stay on your report for up to 6 years and can have a negative impact on your credit score.
Your Vehicle May Be Repossessed
You don’t technically own the car until you’ve paid off your car loan in full. Until then, the lender places a lien on the vehicle. If you default on your car loan, the lender can take steps to repossess the vehicle, though this usually happens after payments are at least 60 to 90 days late.
What Car Loan Payment Relief Options Does CIBC Offer?
CIBC allows up to 2 skipped car loan payments per year without classifying these payments as “missed.” That means these payments will not be reported to the credit bureaus. However, interest will continue to accrue during this period.
Call CIBC at 1-866-525-8622 to discuss your options for skipping payments if you’re having trouble with your finances.
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.
Can You Refinance Your Car Loan At CIBC?
If you’re finding your monthly car loan payments a bit difficult to manage, you may consider refinancing your car loan to reduce your payments.
Refinancing involves taking out a new car loan to replace your current loan. The idea is to secure a lower interest rate so you owe less overall, which can also lower your monthly payments. You can also choose a longer loan term to give you more time to repay the loan, which can also lower your monthly payments. You can use a car loan calculator to better asses how much car you can afford based on various loan terms.
Refinancing makes sense if your current credit score and financial situation have improved since you initially took out your car loan with CIBC. In this case, you may be in a better position to qualify for a lower interest rate.
Benefits Of CIBC Car Financing
There are several perks to CIBC auto loans, including the following:
- Deferred loan payments. CIBC allows you to defer up to 2 car loan payments per year. If you’re finding it difficult to cover a loan payment on occasion, you can take advantage of this skipped payment option. Just keep in mind that the interest will still accrue and eventually need to be paid.
- Multiple loan terms. CIBC offers short- and long-term car loans to suit your needs. Choose from as little as 1-year terms to as long as 8 years.
- Flexible payment schedules. Choose from weekly, bi-weekly, or monthly payment schedules to pay off your CIBC car loan.
- No down payment is possible. Depending on your finances, you may qualify for auto financing with CIBC without a down payment.
- Available at thousands of dealerships. Over 3,200 dealerships across Canada work with CIBC to offer auto loans, making financing with the bank easily accessible.
- Used car loans available. You can obtain auto financing with CIBC for used cars up to 10 years old.
CIBC Car Financing Overview
CIBC offers a couple of unique financing options to help cover the cost of a vehicle purchase:
CIBC Personal Car Loan
For a more traditional car loan, CIBC offers a personal auto loan plan for minimum loan amounts of $7,500 and loan terms between 1 to 8 years. Choose from weekly, bi-weekly, or monthly installment payment schedules, and apply for 100% financing with no down payment required (if you qualify).
The CIBC personal car loan is also available for used vehicle purchases up to 10 years old. You may also have the flexibility to defer up to 2 loan payments per year when finances are tight.
CIBC Personal Line Of Credit
CIBC’s personal line of credit offers flexibility when it comes to accessing extra funds to cover expensive purchases, including cars. CIBC has a minimum loan amount of $5,000 on its personal line of credit. You can choose a specific payment amount, as long as you can meet the minimum monthly amount. You also have the flexibility to choose when to repay the loan.
CIBC Home Power Plan
With the CIBC Home Power Plan, you can combine your mortgage with a home equity line of credit to take advantage of continual access to cash at a low-interest rate. If you need money to cover the cost of a car purchase, you can pay for the vehicle with your home’s equity.
The CIBC Home Power Plan allows a minimum amount of $10,000, and payments may be interest-only to keep payments low.
How Do I Apply For A CIBC Car Loan?
To be eligible for a CIBC car loan, you’ll need to meet the following criteria:
- Be a Canadian resident
- Be the age of majority in your province or territory
- Meet the minimum credit score requirements
- Not have filed for bankruptcy within the last 7 years
- Not have been turned down for credit from CIBC within the last 6 months
You can apply for a CIBC car loan in one of the following ways:
| Phone | 1-866-525-8622 |
| In-person at a CIBC branch | Simply visit your local car dealership and ask for a CIBC car loan |
| Online | Apply Now |
Documents Required For A CIBC Car Loan
You’ll need to provide the following information when applying:
- Bank account number(s)
- Credit card number(s)
- Income and employment information
- Information about your assets and debts
- Social Insurance Number (SIN)
CIBC Car Loans FAQs
Are there any prepayment penalties?
Can I get a CIBC car loan with bad credit?
How can I get a CIBC car loan deferral?
Final Thoughts
When you sign a car loan contract, you’re obligated to adhere to its terms, including making all loan payments on time. If you miss your car loan payments, you may face consequences. If you think you may not be able to make a full payment at some point, call CIBC promptly to see what options are available for you.
