Repairs, Gas & Costs · Updated November 2026 · By the Free Car Help team
Key takeaways
- Call your lender before you miss a payment.
- Deferrals and hardship plans are common after a job loss.
- Voluntary surrender does not erase what you owe.
1. Call your lender before you miss a payment
Ask about a hardship plan, a payment deferral or extension, or a temporary lower payment.
2. Ask about deferral if you are unemployed
Many lenders offer short deferrals after a job loss. Apply for unemployment benefits right away.
3. Ask charities for one-time help
Community action agencies, churches and some Salvation Army offices occasionally help with a car payment when the car is needed for work.
4. Refinance a high-interest loan
A credit union or nonprofit lender may lower your payment.
5. Servicemembers: use your SCRA rights
The Servicemembers Civil Relief Act can cap interest at 6% on car loans taken out before active duty.
6. Understand voluntary surrender
Giving the car back does not erase the debt — you can still owe the difference after it is sold. Get advice before choosing this.
More on car payment assistance.
What happens if your car is repossessed?
After repossession, the lender usually sells the car and you may owe the difference between the sale price and your loan balance, plus fees. Repossession also damages your credit. Acting early gives you more options.
Script for calling your lender
“I am calling because I have had a [job loss / medical emergency / reduction in hours]. I want to keep my car and stay current. What hardship options, deferrals or payment plans do you offer?” Write down the name of the person you spoke with and get any agreement in writing.
Frequently asked questions
Does the government help with car payments?
There is no federal car payment program. TANF in some states and local charities may help in specific situations.
Can charities help pay my car payment?
Some community action agencies, churches and charities offer one-time help when the car is needed for work. Call 211 for options.
