Writing A Hardship Letter Auto Loan

A hardship letter auto loan has to be properly written to maximize its chances of being successful. This means that it has to be formatted the right way, and that it includes the correct information. This will greatly increase the chances of the request being granted. The letter is a formal letter in which a creditor is requested by the letter writer to help financially by changing the terms and conditions of the loan. Some lenders have specific forms for this, which you should complete as well as sending the letter.

What to Include in Your Hardship Letter

In hardship letters, you have to clearly explain what is happening, without becoming emotive. It is about presenting the facts, rather than laying on the waterworks. Tell your lender if your income has been reduced, if you have lost your job, or if you have had unexpected expenses due to medical bills. Tell the lender what you have done to try and keep up with your bills, such as taking on a part time job or giving up on a gym membership. Do not tell your lender how all of that has made you feel, however, because that is irrelevant.

Key Tips in Writing a Hardship Letter Auto Loan

Naturally, you must make sure that the letter is addressed to the right person and that it is written in the right language, and is free from grammatical and spelling errors. Some key tips are mentioned below.

  1. Make sure that your letter is one page only.
  2. Include succinct, objective, and clear facts only.
  3. State that you wish to resolve the debt.
  4. Include all relevant documentation that proves your hardship and your efforts to turn it around.
  5. Thank your creditor for taking the time to read your letter and considering your request.

Things to Avoid When Writing a Hardship Letter Auto Loan

  1. Making your situation sound more dramatic than it is, or otherwise exaggerating your hardship.
  2. Lying or including any false claims, even if you believe they cannot be checked.
  3. Promising things that you cannot guarantee, such as catching up with missed payments by a certain date.
  4. Blaming your lender for the difficulty that you are now in.
  5. Writing an ultimatum, such as stating that you will claim bankruptcy if they don’t help you.

Remember that when the auto loan was provided to you, it was on the basis that you could afford it under your circumstances at that time. Whatever circumstances that have caused you to be in hardship right now, are not the fault of the lender. In fact, if at all possible, you should avoid placing blame at all. Do not use the word “because” in the hardship letter too often, in other words.

A final thing to remember is that you have to make sure that you take a photocopy of everything that you send to them, and that you use registered mail with receipt. Do also follow up after a week, to make sure that your letter has been received.

Auto Loan Hardship Letter Example

{Your Name}
{Your Address}
{Your Phone #}
{Your Loan #}


To Whom It May Concern:

I am writing this letter because I am no longer able to meet the monthly payment for my car loan. I have currently paid {amount} of {total}. I am due to pay {amount} for the next {number} months. I cannot pay that amount, but I could pay {amount} over the next {number} months instead.

I am unable to make my payments on time because of a sudden financial crisis. In the last few weeks I have had to cope with {job loss, family member death, be specific}. I am working hard to get back on my feet, but if I am unable to reduce or extend my payment period then I will have to file for bankruptcy, which I am hoping to avoid.

I need my car for {job purposes} and am hoping to avoid repossession. I am attaching my financial documents such as {documents}, which should indicate the suddenness and seriousness of my situation.

I look forward to hearing from you soon so that we can work out an acceptable payment plan for the future.


{Sender Name}

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