Buying a car without the help of auto financing can be very difficult. Car loans make it possible for Canadians to purchase these expensive items, but meeting loan payment due dates can be tough during times of financial hardship.
Desjardins is one of many banks that offer car loans and is the largest federation of credit unions in Canada. If you have an auto loan with Desjardins or are considering applying for one, you should understand what may happen if you miss a car loan payment, as well as what you can do to reduce your monthly payment amounts to make it easier to meet payment due dates.
What Happens If You Miss A Car Payment At Desjardins?
Missing a car payment may come with certain repercussions, depending on how much time has passed since the payment due date and whether or not you manage to make up for the missed payment:
Less Than 30 Days Late
If it’s been less than 30 days since your payment due date and you still haven’t paid, a representative from Desjardins will call you to find out why. They’ll likely explain to you that the late payment may come with a late payment penalty fee and interest accrued for each day the payment is overdue.
That said, you may or may not be subject to any penalties depending on your specific loan contract and whether or not you make up for your missed payment shortly after the due date.
More Than 30 Days Late
If it’s been more than 30 days since your loan payment was due, the potential consequences may be more severe. In addition to a late payment fee or additional interest, you could also face the following repercussions:
Credit Score Dip
If your loan payment is more than a month overdue, the lender may report it to the credit bureaus. When this happens, your missed payment will be noted on your credit report and your credit score could take a hit.
Your credit score is one of the many factors used to approve you for loans or credit products. It may even be required to sign a lease, get a cell phone contract, take out an insurance policy, or even get a job. As such, missing a loan payment can get in the way of opportunities in the future.
Vehicle Repossession
If your loan payment is anywhere from 60 to 90 days late, the lender may take steps to repossess the vehicle. Since the lender places a lien on the title of the car when you take out a car loan, the lender has the right to take the vehicle back and sell it to make up for any lost profits as a result of your loan default.
What Car Loan Payment Options Does Desjardins Offer?
When you sign a car loan contract, you promise to adhere to its terms, including making timely payments until the full loan amount is paid off. But what happens if you find it difficult to make a payment on time?
If you’re having financial difficulty and are at risk of missing a payment or have already missed a payment, reach out to Desjardins to find out if you can make alternative payment arrangements regarding your auto loan:
Members: 1-877-695-5559 or 418-695-5559 (Quebec City area)
Non-members: 1-877-999-5552 or 514-397-0376 (Montreal area)
Can You Defer A Car Loan Payment With Desjardin?
In some cases, you may be able to defer a loan payment. However, Desjardins only grants payment deferrals on a case-by-case basis. Generally speaking, your loan must be in good standing with no history of late or missed payments to qualify.
If you’re permitted to skip a payment or two, the interest on the deferred payment will still accrue. That means you’ll still be required to cover the interest portion on the missed payment before the loan is fully repaid.
Can You Refinance Your Car Loan At Desjardins?
If you’re looking to lower your loan payments, refinancing may be one way to do that. Refinancing involves applying for a new loan to repay your old loan. If you can qualify for a lower interest rate and extend your loan term, you can save money in interest and reduce your loan payments so they fit better within your budget.
This option makes sense if your credit score and financial health have improved and some time has passed since you first purchased your vehicle.
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.
Benefits Of Desjardins Car Financing
The following are some of the advantages of applying for a Desjardins car loan:
- Long loan terms. Desjardins offers loan terms of up to 96 months for cars, SUVs, trucks, and minivans, giving you plenty of time to repay your loan. The longer the loan term, the smaller your installment payments can be, which you may find easier to pay each month.
- Flexible payment schedules. Choose from weekly, bi-weekly, or monthly payment plans to suit your needs.
- No down payment possible. You may be able to qualify for 100% auto financing, which means you won’t need to come up with a down payment.
- No early prepayment penalties. When you get a Desjardins Auto Loan – through dealers, you’ll have the option to pay off your Desjardins car loan in full before the loan term ends without incurring any early repayment penalty fees, which are common with other lenders.
- Get pre-approved to avoid credit checks at the dealership. If you’re a Desjardins member, you can get pre-approved for a car loan without the need to undergo a credit application with the dealer.
Desjardins Car Financing Overview
You have a couple of options when it comes to applying for a Desjardins auto loan:
Auto Loans Through Dealers
Apply for a Desjardins car loan directly from the dealerships to quickly and conveniently secure a loan at the same time that you complete your vehicle purchase. Finance the purchase of a new or used vehicle of at least $7,500 and secure a competitive interest rate directly from the dealership. Loan terms range from 6 to 96 months, and you may qualify for up to 100% financing.
Leisure Vehicle Loans Through Dealers
If you wish to finance the purchase of a leisure vehicle — such as motorcycles, snowmobiles, boats, trailers, and motorhomes — Desjardins offers loans to cover the cost starting at $7,500. Loan terms range from 6 to 240 months.
Auto Loans At A Desjardins Branch
Alternatively, you can apply for a car loan at a Desjardins branch to help cover the cost of a vehicle purchase. Finance the purchase of a new or used vehicle of at least $12,500 and choose from daily, weekly, bi-weekly, or monthly payment schedules.
How Do I Apply For a Desjardins Car Loan?
You can apply for a Desjardins auto loan in a variety of ways:
In person at a Desjardins branch. Book an appointment to speak with a Desjardins representative to arrange for auto financing in person.
By telephone. Call Desjardins at 1-888-277-8726 to start the application process.
Online. Visit the Desjardins website to apply for a car loan. Click on the “Personal” tab on the homepage, then “Cards, loans and credit”. Navigate to “Auto and other vehicle loans” under the “Loans” section, then choose the auto loan product you’d like to apply for.
At a participating dealership. You can apply for a Desjardins car loan directly with the dealership you’re buying your vehicle from.
To qualify for a Desjardins car loan, you’ll need to meet the following requirements:
- Be a Canadian resident
- Have a valid Canadian address
- Be the age of majority in your province
- Be a member of Desjardins
- Have a valid driver’s license
- Have an active Canadian bank account
Desjardins Car Loans FAQs
Can I make additional payments to my car loan?
Can I get a Desjardins car loan with bad credit?
Can I change my Desjardins auto loan due date?
Final Thoughts
If you have a Desjardins auto loan and are concerned about missing a loan payment, get in touch with Desjardins immediately to see what can be done to avoid missing the due date. If you fail to make a payment, you could risk some serious consequences. You may be able to take steps to change your loan payment schedule or even reduce your payment amounts to help them fit better with your budget.
