• Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

What happened

At the time, the dealership told her she wouldn’t qualify for a loaner car, forcing her to spend over $2,000 on rideshares when she couldn’t carpool with friends or coworkers. Meanwhile, she was still obligated to pay her auto loan and car insurance without a working car. And because her loan balance was higher than the value of her broken-down car, she couldn’t afford to sell it or trade it in for another vehicle.

Ford ultimately updated its recall notice, offering free engine replacements to all of those with failed engines as a result of damaged oil pump belts and belt tensioners (only until the parts needed for the final repair arrive). The dealership also agreed to reimburse Stevens for the rideshare and rental car expenses she incurred, and set her up with a loaner car while her new engine was being installed.

This 2 Minute Move Could Knock $500/Year off Your Car Insurance in 2024

Saving money on car insurance with BestMoney is a simple way to reduce your expenses. You’ll often get the same, or even better, insurance for less than what you’re paying right now.

There’s no reason not to at least try this free service. Check out BestMoney today, and take a turn in the right direction.

Get Started

Legal complaints

Stevens wasn’t the first to face this problem, as the class action lawsuit against Ford Motor Company was filed roughly one year prior. In the 114-page complaint, the group alleged that a Ford employee called the engines “‘time bombs’ due to a defect that prevents oil from circulating properly that destroys the engine, leaving consumers with a repair bill that frequently exceeds the value of the vehicle.”

The group is seeking a jury trial, injunctive relief and an award of punitive damages from Ford to compensate all members of the class action. The lawsuit is still pending in court, and a judge has not made a decision on the case.

Before the newsroom reached out to Stevens to inquire about her situation, the company refused to consider refunding her costs or provide a loaner car until the repairs could be made. Though, Ford said it updated its recall on June 9, 2024 — before Atlanta News First’s investigation. Without the engine replacement option, Stevens — and others with vehicles under recall — could have continued to face financial issues with a repair nearly a year away.

But if you were caught in this situation, you may have some options short of legal action and a news team intervention.

What can you do with your car payments in this situation?

If you find yourself in a similar situation with your car, you may have several options instead of continuing to pay the loan or letting the car go into repossession. The first step begins with contacting your lender to discuss options.

It’s important to be upfront with your lender about what you are experiencing, and ask about other options for future payments. One option is requesting a payment extension or deferral, which would allow you to skip some payments over a short period of time. While this plan can save you money in the short term, there are two key downsides.

First, your loan will be extended by the number of payments you skip, taking longer to pay off your vehicle. Second, interest may still accrue on the loan, which could increase your monthly payment. If you are already behind on payments, you can also work with your lender to request a payment plan to get caught up on the loan. While this can help you get caught up based on the portions of the loan you missed, you will need to return to regular monthly payments once you are caught up.

Before finalizing any arrangement with your lender, it’s a good idea to get a copy of the agreement in writing. A document will spell out the obligation of both parties during the deferral or payment plan, eliminating any misunderstandings or issues that could set you back even further.

When it comes to car insurance, there are some money saving options you could take advantage of while maintaining an active policy. Some insurance providers offer low-mileage insurance discounts if you plan on driving less than a certain number of miles annually. If your car will be broken down for an extended period of time, a low-mileage plan could reduce your monthly insurance bill.

This can be better than pausing part of your insurance completely (not an option if you’re still driving rental cars), as you may risk a lapse in coverage once you’re back on the road. Plus, this is usually only an option in select circumstances, like if you own the car outright or are sure of the number of days it will be out of use.

Regardless of which option you go with, there are ways to lower the financial burden of a vehicle when you no longer have access to it for the foreseeable future.

Sponsored

Invest in real estate without the headache of being a landlord

Imagine owning a portfolio of thousands of well-managed single family rentals or a collection of cutting-edge industrial warehouses. You can now gain access to a $1B portfolio of income-producing real estate assets designed to deliver long-term growth from the comforts of your couch.

The best part? You don’t have to be a millionaire and can start investing in minutes.

Joe Cortez Freelance contributor

Joe Cortez is a freelance contributor to Moneywise.

Disclaimer

The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter. Advertisers are not responsible for the content of this site, including any editorials or reviews that may appear on this site. For complete and current information on any advertiser product, please visit their website.