If you’re struggling to pay for your car, you’re not alone. Many people in 2025 are finding it tough to keep up, and more cars are getting taken away (called repossession). Giving your car back to the bank might seem like an easy fix, but it can mess up your money situation for years, hurt your credit score, make it hard to get loans, and cost you way more later. Instead, you can take simple, honest steps to keep your car and stay on track. Here’s what happens if you lose your car and how to stop it, with tips from Honest Car Payment.
Why Repossession Is Really Bad
When your car gets repossessed, it’s a big problem. It can lower your credit score (like a grade for how you handle money) by 100–150 points. For example, if your score was okay (like 650), it could drop to a bad range (below 600). This stays on your credit report for 7 years, and other money troubles, like unpaid bills, can make it feel like it lasts 10 years. A low score makes banks say “no” when you try to get loans for cars, houses, or other things for 2–3 years. You might have to deal with shady lenders who charge you a lot.
After a repossession, buying another car costs a ton more. People with good credit pay around 5% interest (like an extra fee for borrowing money) in 2025, but if your car was taken, you could pay 18–24% interest, plus $3,000–$4,000 in extra fees, and get stuck with a beat-up car that breaks down a lot. For a $20,000 car, someone with good credit pays about $22,800 total over 5 years. But if you had a repossession, you might pay $50,000–$60,000—3 or 4 times more! Plus, losing your car can make it hard to get to work, especially if there’s no bus nearby, and that can make money problems worse.
Easy Steps to Keep Your Car
You don’t have to lose your car if you act fast. Honest Car Payment shares these simple steps to help:
- Take Care of Your Family First: If you’re stuck choosing between buying food for your kids or paying for the car, always feed your kids. Food is more important. You can find help at local food banks to save money for your car payment while keeping your family fed.
- Call Your Car Lender Right Away: As soon as you think you can’t pay, call the company you owe for your car (check your payment papers for their number). They don’t want to take your car because it costs them money (like $2,000–$5,000). They might let you skip a payment, lower what you pay each month, or give you more time. Say something like, “I’m having a hard time because I lost my job. Can you help?” Do this before you miss a payment—waiting 2–3 months makes it harder to fix. Write down what they say to keep track.
- Get a Second Job: If you need extra cash to pay for your car, try a side job. You could drive for Uber, deliver food with DoorDash, or work part-time at a store. These jobs can make $500–$1,000 a month, enough to cover most car payments ($400–$600). It’s hard work, but it keeps your car and stops money problems from getting worse.
- Find a Co-Signer: If you’re in a tough spot, ask a friend or family member with okay credit (not perfect, just average) to co-sign a new loan for your car. This can get you a better deal, like paying 8–12% interest instead of 24%, which lowers your monthly bill. But be clear: if you miss payments, they have to pay, so talk it out to keep things fair.
- Try Honest Car Payment: Honest Car Payment, through carrefunds.com, can help lower what you pay. They check your car loan to see if you got charged too much for things like GAP insurance or warranties. For example, if you paid $1,250 for GAP when it should cost $60–$550, they might get you a refund. They can also help you get a new loan with a lower interest rate, like going from 10% to 6%, saving you thousands. Email your loan papers to Info@honestCarpayment.com to start, but ask about any fees first to be safe.
- Get Free Help: Groups like the National Foundation for Credit Counseling give free tips on managing money and talking to your lender. If your car is worth more than what you owe, you could sell it to pay off the loan and buy a cheaper car. If nothing else works, giving your car back on your own (called voluntary surrender) is better than having it taken, but it still hurts your credit.
Act Now to Stay Safe
Saying “I give’m back to the bank” can ruin your credit, make banks say “no,” and cost you a fortune later. With Honest Car Payment’s help, you can avoid this. Feed your family first, call your lender right away, try a side job, find a co-signer, and check with carrefunds.com for savings. These steps keep your car and your future safe. Call your lender or Honest Car Payment today—don’t wait!