What Does Eviction Mean for a Car Loan?

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Bethany Hickey is is a Content Manager and Writer for Auto Credit Express, CarsDirect, and many other automotive blogs. She's a graduate from the University of Michigan-Flint, with a bachelor’s in English-Writing. 


, Content Manager - September 20, 2021

If you already have a car loan and you’re about to get evicted, or just were, it may not be cause for concern.

Eviction and Your Auto Loan

Eviction isn’t a fun process. If you’re facing eviction, you may be worried about its impact on your active car loan. However, as long as you're making your auto loan payments on time, there shouldn’t be much to worry about.

A lender requires your home address while you’re originally applying for the car loan, so they know where the vehicle’s going to reside the majority of the time. If you default on the loan the lender needs to move forward with repossession, they’re likely to tow away the car from your home address (which they’re allowed to do).

But if you’re not on the path of default and/or repo, then your change of address shouldn’t be much of a problem. Additionally, evictions aren’t listed on your general credit reports. A landlord may report any missed or late rent payments to the credit bureaus, but the eviction itself shouldn’t be reported.

Your vehicle’s registration and driver’s license may need to be updated, however, if you’re no longer at the listed address. If you’d like to keep your lender in the loop and maintain a good, existing relationship with them, contact them if you’ve recently changed your address.

Need Help With Car Payments?

If you were recently evicted and you’re worried about losing your car next, then it’s time to talk to your auto lender. Lenders vary, but more often than not, they have ways to assist borrowers that are struggling with their car loan.

Believe it or not, your lender likely doesn’t want you to default on your auto loan, either.

Many lenders offer deferment and/or assistance programs to their borrowers going through tough financial times. Or, they may offer to move the car payment due date to a more convenient time. If those tactics don’t work for you, then refinancing your vehicle could be a solution and a way to get a smaller monthly payment.

More on Deferment Programs

To qualify for a deferment program, where your loan payments are temporarily paused, then you may need to complete a hardship letter that justifies why you need the assistance. Borrowers that were laid off, have medical emergencies, or lost their income, are often eligible. Most lenders require that you’ve stayed current on your loan payments as well.

Remember that deferment programs don’t erase your skipped payments – they’re typically added to the back-end of your car loan. And often, borrowers are required to continue to make payments on the accrued interest even during the deferment period.

Need Another Auto Loan?

If your current car loan simply isn’t cutting it right now, or you’re a borrower with credit challenges in need of special financing, then we want to help at CarsDirect.

We’ve created a coast-to-coast network of special finance dealerships that specialize in assisting borrowers with bad credit. Complete our free auto loan request form and we’ll look for a dealer in your local area.

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, Content Manager

Bethany Hickey is is a Content Manager and Writer for Auto Credit Express, CarsDirect, and many other automotive blogs. She's a graduate from the University of Michigan-Flint, with a bachelor’s in English-Writing. 


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