Many people want lower payments on their auto loans but don't want to have to deal with their lender and don't trust the idea of auto loan modification companies. But there's no reason to be afraid of these companies. They are on your side and will work hard to get you better loan terms.

If you're nervous about the idea of auto loan modification companies, then do some research and be sure you use a company that is well respected. If you choose a company at random and you're not familiar with their track record or their method of operation, you very well could end up with a fly by night company that doesn't do you much good. But if you choose carefully and choose one that has a good reputation and a good record of negotiating auto loans, then you can save your credit and your vehicle.

Consider the alternative. You're behind on your car payments or you're about to fall behind with no options in sight. Did you know that with one late payment, most lenders have the right to repossess the vehicle? Chances are they won't. But you'll know that it's a possibility and it will be in the back of your mind all the time that they could repossess your vehicle out from under you. That makes the entire situation more stressful.

In fact, most lenders will tell you that while you're negotiating with them for a loan modification they still have the right to come and get the vehicle. And they usually won't guarantee that they won't repossess it even while you're trying to negotiate and work with them for better terms. This is to make sure that you're aware of their rights and that they have the upper hand at all times. But if you let auto loan modification companies do the negotiating for you, you're saved the stress of dealing with them. Since you're not experienced in negotiating loan terms, you're probably not going to get as favorable a rate as the company could on your behalf.

Besides the stress of worrying about repossession, there's the stress of learning about your credit report to consider. Every late payment adds negative information to your credit report. And sometimes loan modification negotiations can go on for a few months. Different lenders have different policies, but many require that you be from 1 to 3 months behind in your payments before they'll even consider modification. As the negotiations go on you can end up several more months behind.

Auto loan modification companies can streamline the process and help prevent that. Because auto loan modifications are what they do best, it's a much faster process. The lender will also see that you're very serious if you have someone negotiate on your behalf. The faster the negotiations take place, the fewer late payments or missed payments will show up on your credit report. And once you can start making those payments on time again, your credit will start to improve.