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Did you know that you can start taking advantage of what are known as senior discounts well before retirement age? In fact, you can often save money when you are as young as 55 and in some cases even 50.

In fact, many “senior” discounts can be accessed through membership in the AARP (formerly the American Association of Retired Persons). The AARP is dedicated to the needs of the 50+ population, but anyone 18 or older can become a member (membership runs $20 a year, though discounts may be offered).

And the sooner you start working those senior discounts, the more you could potentially put into retirement savings, which could lead to a more significant nest egg when you really do reach retirement age.

Read on to learn about some smart ways you might start saving as a senior or soon-to-be senior.

Travel Senior Discounts

Many major airlines, hotel chains, cruise lines, and rental car companies offer senior discounts, sometimes as much as 30% off, which can help bring down vacation costs.

These deals aren’t always obvious, however. You may have to track them down on company websites or simply call directly and ask.

Here are some different ways you may be able to score senior deals on travel.

💡 Quick Tip: Typically, checking accounts don’t earn interest. However, some accounts do, and online banks are more likely than brick-and-mortar banks to offer you the best rates.

Airline Senior Discounts

You may not always find a code or a drop-down menu when booking online, but you can often get good discounts on air travel if you call the airline directly.

Some airline discounts to look for:

•   Delta offers senior discounts in certain markets, but not online.

•   United Airlines may offer senior fares to selected travel destinations for customers who are 65 and older (when booking online or over the phone).

•   British Airways offers exclusive AARP Member offers, including up to $65 off.

Car Rentals

AARP membership can get you some significant discounts on car rentals and there are some companies that offer independent discounts. Some to look for:

•   Alamo provides deals through its Senior Circle program.

•   Avis gives AARP Members up to 35% off Avis base rates.

•   Budget offers AARP members up to 35% off, and sometimes also a free upgrade and other exclusive benefits.

•   Hertz offers travelers 50 and up to 20% off base rates, and they can also take advantage of additional program benefits.

Cruises

Cruise lines, such as Carnival and Celebrity Cruises, commonly offer discounts to those travelers that are 55 and older.

It’s best to call the cruise line before booking to see what is currently available, as some won’t advertise specific deals on their websites, yet may have special senior offers.

Another savvy savings tip is to wait to get the best deal available to you, and then ask to apply your senior discount on top.

Hotels

Senior discounts are available at many hotel chains, but are not always advertised. Again, many of the programs are aligned with AARP membership, but there are plenty of others that offer their own independent discount.

A few deals to keep an eye out for:

•   Cambria Suites offers up to 10% off to AARP members.

•   Travel Lodge gives guests aged 60 and older special savings off the best available room rate when booking online or over the phone (ask for the “senior rate”).

•   Choice Hotels gives those who are 60+, or who are AARP members, up to 10% off with advance reservations.

•   Motel 6 offers adults 60+ a discount of 5% off of their best available nightly rates at each of their 1,400+ locations across the United States and Canada.

•   Hilton Hotels & Resorts gives adults aged 65 and older up to 6% off their best available rates.

National Parks

For just $80, those aged 62 or over can get a lifetime America the Beautiful Pass, which covers entrance fees at Federal recreational sites, including national parks, throughout the U.S.

Applicants must provide documentation of age and United States citizenship or permanent residency.

Amtrak

If you like the idea of traveling by train, then you may want to look up the Amtrak senior discount — travelers 65 and older are eligible to receive a 10% discount on most Amtrak trains.

Retail Discounts for Seniors

As a senior, you can often save big with many retailers. Some stores provide a senior discount on a specific day, such as every Wednesday or the first Tuesday of the month.

One of the best (and best known) is Kohl’s, which typically offers 15% off every single Wednesday for those 60 and older. The money you save could help build your retirement savings.

According to The Senior List, other major retailers that may offer discounts to those 55+ include:

•   TJMaxx

•   Walgreens

•   Tanger Outlets

•   JOANN

•   Michael’s

Restaurant Deals for Seniors

This is probably one of the richest sources of discounts available to seniors.

Whether it’s on a certain day or during a specific block of time, many restaurants offer something, so it’s a good idea to ask around at your favorite places and to also check restaurant websites.

Many eateries also have senior menus that offer discounts to diners over a certain age.

Promotions vary according to location, but here are a few deals you may keep an eye out for.

•   Denny’s: a special discounted menu for people ages 55 and up; AARP members get a 15% discount.

•   McDonald’s: senior discounts at some locations.

•   IHOP: a 55-plus menu, which offers deals for seniors.

•   Outback Steakhouse: AARP cardholders can score 10% off.

•   Bubba Gump Shrimp Co: 10% off for AARP cardholders.

Senior Discounts on Groceries

Many major grocery stores offer senior discounts on certain days, which can be a great way to save money on food. Some local independent grocery stores will offer small discounts too, so it never hurts to ask your go-to market about senior deals.

Look for these commonly offered discounts:

•   Fred Meyer: 10% off on select items on the first Tuesday of every month for those 55 and older.

•   New Seasons: 10% off for seniors 65+ on Wednesdays on most items.

•   Hy-Vee: 5% off on Thursdays for seniors 55+ at participating locations.

💡 Quick Tip: If you’re creating a budget, try the 50/30/20 budget rule. Allocate 50% of your after-tax income to the “needs” of life, like living expenses and debt. Spend 30% on wants, and then save the remaining 20% towards saving for your long-term goals.

Senior Deals on Movie Tickets

Major movie chains often offer great discounts on tickets for seniors. Some deals are all day every day, while others require going on a specified day and/or block of time.

Regal, for instance, discounts the price of senior admission from $1 to $4 per ticket, depending on the specific movie, theater, and showtime.

Another example is Showcase Cinemas, which usually offers lower-priced tickets to adults 60 and over (as well as deals on popcorn and drinks) on Wednesdays.

Local, independent theaters also commonly offer discounted tickets to seniors, so it’s always worthwhile asking.

Senior Discounts at Drug Stores

Almost every pharmacy out there is interested in getting your business, and offers some sort of senior discount program.

Rite Aid, Costco, CVS, and Walgreens all commonly offer types of membership programs (and sometimes also special monthly discount days) for older adults with savings that can really add up.

It can also be wise to check with local, independent pharmacies for senior deals as well — they’re not always advertised.

Recommended: Ways to Cut Back on Spending

Senior Cell Phone Savings

T-Mobile, AT&T, and Verizon all typically offer cell phone plans with senior discounts. If you’re 55 or older, you can very likely get a good deal on a plan.

Some smaller carriers also provide special services and more ways to save. For instance, Consumer Cellular, which already offers affordable no-contract plans, has an established relationship with AARP, so there’s a discount on monthly service for any existing member.

The Takeaway

You might not even think to look for, let alone ask for, a “senior discount” if you’re under age 65. But if you’re 50 or older, you may be missing out on a great way to cut back on spending.

Senior discounts are offered by many retailers, movie theaters, airlines, rental cars, cell phone carriers, restaurants and more. Some are tied to AARP membership, while others are offered independently, with varying age limitations.

Whatever deal you can snag, senior discounts can allow you to enjoy special purchases and experiences without breaking your budget and/or save on everyday essentials, leaving you with more cash in the bank.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

How to get a 20% discount for seniors?

To get a 20% senior discount, check with local stores, restaurants, and service providers for their senior discount policies. Many businesses offer discounts to customers over a certain age, typically 55 or 60. Always carry a valid ID to prove your age and ask about available discounts when making purchases.

How much is Amazon Prime for senior citizens?

Amazon Prime for senior citizens costs the same as for other customers (currently $139 per year or $14.99 per month). However, they do offer a Prime Access membership for those who receive government assistance, which includes seniors on programs like SNAP and Medicaid.

Is Costco free for seniors?

Costco membership is not free for seniors. The fee for a basic (Gold Star) membership is currently $65 a year, regardless of your age. However, Costco discounts on prescription drugs, hearing aids, gas, and general merchandise can make a membership worth it for seniors.

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

SOBNK-Q225-090

Having a roommate can be great; you have companionship and someone to split the bills with. But that sharing of expenses can sometimes get challenging and even tense. Roomies can wind up arguing over who is using up all the paper towels or sending the electricity bill through the roof.

Here are some smart tactics that can help keep the peace and also control costs.

Creating Clear Guidelines on Which Bills to Split

One of the easiest ways to ensure everyone feels satisfied with how the household bills are handled is to be direct and upfront with financial expectations. And this means being straightforward about what those expectations are before anyone moves in.

If you’re moving into someone’s home or an existing roommate situation, it’s a good idea to ask how bills are handled now and how it will change when you move in. Some specifics you may want to address:

•   Whose name is currently on the utilities?

•   Will I be expected to put my name on any utilities?

•   When is money collected to split the bills?

•   Are the bills divided equally, or by room size?

These can be helpful, because everyone can understand what’s expected. It also sets ground rules moving forward.

Deciding How Everyone Wants to Split Bills

As for the best way to split bills, that may depend on the household situation. For example, if the home has two evenly-sized rooms and a shared bathroom, kitchen, and living area, it may be easiest to simply split the bills down the middle as everyone has an equal space. But if one room is exponentially larger than the other and has its own en suite bath, the bills could be split proportionally to reflect the extra space for one roommate versus the other.

It is a good idea to tackle the grocery issue head on. For instance, address such questions as:

•   Is the house going to split groceries?

•   Is everyone going to enjoy one shared meal together at night?

•   Are the roommates going to split common goods like cleaner and toilet paper?

•   Or is each person going to fend for themselves?

Any way you choose to go about it is fine, as long as it’s all out in the open — before someone accidentally finishes someone else’s ice cream without asking.

Recommended: Ways to Save Money on Food

Picking Who Is Responsible for Which Bill

Once it’s decided how a bill will be divided, you may want to assign each roommate ownership of bills for things like the electricity, heating, gas, water, trash, cable and internet, and more, depending on the rental agreement. Perhaps you’re able to get a better deal based on a roommate’s existing account with a certain biller. That may be one way to decide and to cut back on expenses.

Or, you might have the roommates divide up the bills evenly in order to distribute the responsibility. Doing things this way may also ensure everyone pays bills on time. Being late with bills can lead to fellow roommates being surprised with a service being interrupted and their credit being dinged if they are listed on the account that’s unpaid.

You might also look into changing the due date on bills; this can sometimes be accomplished and can ease cash flow.

Creating a Roommate Bills Contract

Once the lease has been negotiated, the bills have all been cleared up, and everyone is in agreement, consider creating some sort of “roommate contract” that spells out exactly what was decided upon, which everyone reads and signs.

That way, no one can ever claim they were confused about the household budget and how bills are split, when money is owed, and who is responsible for what.

Sharing a Spreadsheet of Expenses

Once you and your roommate(s) are settled in, you might want to create and share a monthly Excel spreadsheet of expenses.

You could share this spreadsheet online, allowing each roommate to keep track of the expenses they are responsible for and easily let everyone know what has been paid and what is outstanding.

This spreadsheet may also come in handy for adding in shared groceries and necessities like milk, eggs, toilet paper, and paper towels. That way, everyone can keep track of who bought the last batch to avoid an argument later. You’ll also see how much your household is spending on groceries per month and other expenses.

Recommended: Different Types of Budgeting Techniques

Sitting Down Together at the End of Each Month

One sure way to ruin a roommate relationship is for one person to get passive-aggressive about the bills. As a result, you generally want to avoid leaving little notes around the house about who owes what (or who hasn’t done the dishes in far too long) and instead face those issues head on.

At a good time for everyone, perhaps toward the end of each month, schedule a 10-minute roommate check-in. In this meeting, everyone can share household happenings, announcements, and any updates on household bills.

By sitting down in person, no one can avoid possible uncomfortable questions about money. You all can figure out potential sticky situations together.

As a bonus, roommates can also use this time to go over any other to-dos around the house. You might also discuss ways to economize, such as saving money on water bills.

💡 Quick Tip: Typically, checking accounts don’t earn interest. However, some accounts do, and online banks are more likely than brick-and-mortar banks to offer you the best rates.

Keeping Some Personal Purchases Separate

Though some may be tempted to fully invest in a roommate relationship by sharing the financial burden on just about everything, there are some items that are better left in the personal spending category.

That includes the purchase of any big-ticket items you’d like to take with you if you ever move out. These might include such items as a TV, couch, tables, glasses, or an expensive air fryer purchased on a whim.

It may also be helpful to distinguish an area in cabinets and the fridge for each individual roommate to place specialty or expensive food items they do not want to share.

If one roommate has a pet they adopted on their own, it is a good idea to keep those petcare expenses completely separate.

Another common recommendation is for everyone to invest in their own renters insurance. This will protect all their items in case of a fire, flood, burglary, or more. This type of insurance could save everyone a lot of money and heartache if disaster strikes.

Using Modern Technology to Split Bills with Roommates

Fortunately, splitting bills with roommates is easier than ever, thanks to the advent of P2P transfers. If one roommate covers a household bill, the rest of you can reimburse them using a app like Venmo or Apple Pay. Your bank may also have tools you can use to quickly send funds to others.

It can be fast and free to transfer money this way and can make sharing expenses with roommates quick and simple.

The Takeaway

The key to splitting bills with roommates smoothly is to establish clear financial guidelines from the start. Consider using P2P transfer apps to simplify reimbursements and maintaining a shared spreadsheet for transparency.

Other moves that can help keep the peace include: having regular monthly check-ins to address issues openly, keeping some personal expenses (like big-ticket items, specialty groceries, and pet care) separate to avoid conflicts, and setting up a roommate contract to formalize agreements and prevent misunderstandings.

If you need flexible banking (whether or not you have roommates), consider what SoFi has to offer.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

How should bills be split with roommates?

To split bills fairly with roommates, start by listing all shared expenses — rent, utilities, internet, and subscriptions. Agree upfront on how to divide them, usually equally unless someone has a significantly larger room or different usage habits. You might designate one person to pay the bills and collect each roommate’s share in advance using a payment app. Open communication and written agreements can help avoid misunderstandings and ensure everyone pays their fair share on time.

How do you divide utilities with roommates?

Divide utilities by first listing all monthly expenses, such as electricity, water, and internet. Agree on a fair division method, such as splitting equally or based on usage. Then choose whether one person pays all bills and collects money, or if you will divide responsibilities (e.g., one pays electric, another pays internet, etc). Consider using a budgeting app or shared spreadsheet to keep tabs on payments and ensure everyone pays their share on time. Regularly review and adjust the division if necessary to maintain fairness and avoid conflicts.

How do you split bills between two people?

When splitting bills between two people, first decide what will be shared — rent, utilities, groceries, etc. A common approach is a 50/50 split, but you can adjust this based on income or usage. For example, if one person earns significantly more, a proportional split might be more fair. Next, establish who’s responsible for paying which bills so nothing slips through the cracks. Also consider using tools like a shared budgeting app or spreadsheet to track expenses. Clear communication and consistent practices help prevent conflicts and promote financial harmony.

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

SOBNK-Q225-066

Whether you’re refreshing a single room or outfitting an entirely new home, furnishing a space can be an exciting creative process. It’s the chance to bring your vision to life, curate your style, and find pieces that truly reflect who you are.

But let’s be real: furniture can be pricey these days. The good news? Affordable doesn’t have to mean cheap-looking. With the right strategies, you can score stylish, quality pieces without draining your wallet — or settling for the dreaded “first apartment” look.

Here are 25 savvy tips to help you furnish your space for less — and sometimes even for free.

25 Tips on How to Get Cheap Furniture

Scoring great furnishings on a tight budget takes some planning, and also knowing where to buy affordable furniture. These ideas can help you create a great space without spending a lot.

1. Taking Stock of What You Already Have

Before going out to buy new stuff, you may want to do a walk-through of your space and make a list of what you already have. You can label each item “keep,” “donate/sell” or “toss,” so you know exactly what you need.

2. Taking Stock of Mom’s Basement Too

Do you have family members who may be harboring some perfectly good but no-longer-needed furniture? Consider scoping out their basements, attics, and garages for some free treasures.

3. Making a Wishlist

It’s okay to dream a little. In fact, a good way to start furnishing a new home is to go to your favorite furniture store’s site and fill your cart without considering price. You can then cull down your list to essentials, and start looking for those pieces (or something similar) for a cheaper price tag.

4. Renting Furniture

If your furniture budget is super tight, you may want to consider renting furniture from a company like CORT rather than buying everything you need. Renting can also be a good option if you’re only going to be in your current home for a short time.

5. Timing Your Purchases Right

Knowing when to make big purchases can help you get some steep furniture discounts. Furniture stores tend to get new inventory at the end of winter and end of summer. To make room for newer items, they will often run good sales in January/February and July/August.

When it comes to furnishing your porch or patio, the right time to buy furniture is typically the end of summer and early fall, when retailers are trying to clear out any leftover inventory.

💡 Quick Tip: Typically, checking accounts don’t earn interest. However, some accounts do, and online banks are more likely than brick-and-mortar banks to offer you the best rates.

6. Checking Out Freecycle

Cheap is great, but free can be even better. Consider going to a reuse/recycle site like Freecycle.org to see what people in your area may be looking to get rid of. Keep in mind that good items often go fast.

7. Curbing Impulse Buys

It’s easy to fall madly in love with a cool sectional sofa and give in to an impulse buying that can leave you with major debt. Before you pull the trigger on a pricey new piece of furniture, you may want to press pause. By giving yourself a week or so to really consider the purchase, you may realize you don’t actually need it. Or you may be able to scout out a cheaper but equally good option.

Recommended: How to Combat Impulsive Spending

8. Mixing High and Low

Here’s another way to buy furniture cheap: You can often get a high-end look by splurging on one or two classic investment pieces and then going with cheaper, trendier accent pieces and accessories.

9. Putting the Word Out on Social Media

You may want to use social media to let people in your network know that you are on the hunt for furniture. You can even specify what you’re looking for (dining table, a chaise for the yard) and what you’re willing to offer (or barter) in return. You may be surprised at the response you get.

10. Selling Stuff You Don’t Need

To bolster your furniture budget, consider selling pieces that no longer work for your space. If you have a lot to get rid of, you might host a garage sale. For just a few items, you can list them on a resale site like Craigslist, OfferUp, or Facebook Marketplace and see how much you can score.

11. Doing a Furniture Image Search

If you see a piece you love but it doesn’t fit your budget, download a photo of the item and then go to Google Images. If you click on the “Search By Image” button (the camera icon) and upload the photo, you can search for similar items. You might find the item’s twin at a better price.

12. Searching Craigslist

Craigslist may be an oldie, but it can still be a goodie when it comes to finding affordable furniture. You can head to the site (which hasn’t changed much over the years), click the furniture tab, and search the possibilities.

13. Thinking Beyond Furniture Stores

Mass market retailers like Target, Walmart, and Home Depot actually have large furniture departments. You may be able to find stylish pieces at good prices, along with free delivery.

💡 Quick Tip: Want a simple way to save more everyday? When you turn on Roundups, all of your debit card purchases are automatically rounded up to the next dollar and deposited into your online savings account.

14. Searching Amazon Warehouse

How else to buy furniture cheap? Check out Amazon Resale, a corner of Amazon’s main site that is dedicated to selling used, pre-owned, and open-box products (often things that were returned unused or close to it). You can click on the furniture tab and either search for your needs or just see what’s available.

15. Hitting the Yard Sales

You can spend a Saturday or Sunday morning driving around town looking for treasures. Or you can check out yard sale listings online, then map out a route that hits the yards or stoops with the most potential.

16. Asking About the Floor Model

If there’s a piece in a store you absolutely love but it’s a bit out of budget, you can always ask the manager if they will sell you the floor model for a discount.

Recommended: The Secret to Never Paying Full Price

17. Combing Flea Markets

It can take a little time and effort, but you can often find great, affordable treasures at flea markets. Sometimes a little DIY is all it takes to transform something past its prime into the perfect thing for your place.

18. Browsing Antique Stores

In the winter months, you can often get the flea market experience by combing through antique stores or, even better, antique malls that have multiple booths housed indoors.

19. Checking Online Resale Marketplaces

Sites like OfferUp and Facebook Marketplace (where you may have listed items to sell) can also be a great resource for finding what you need. You can even do a search for a specific item you saw in store to see if anyone is offloading that same piece.

20. Thrifting Furniture

Large thrift store chains like Goodwill and Salvation Army typically get lots of donated items every day and can be a great place to find your next book shelf or coffee table. Local thrift shops can be worth checking out too.

21. Checking Out Salvage Stores

One of the most widely known salvage stores, Habitat ReStore, has locations throughout the country and often sells new and used furnishings, as well as appliances, for far less than retail. Bonus: They are helping to divert those goods from the waste stream.

22. Going Cheap on Art and Accessories

Once you’ve made your big item purchases, it’s time to think small (and cheap) with accent pillows, throws, artwork, and other decorative accessories. These items don’t need to cost a lot to add serious personal style to a space. You may fall for a $150 throw pillow but, odds are, you could find a super cute one for a fraction of the cost.

23. Stopping by Estate Sales

You can often find beautiful, high-quality pieces of furniture, as well as artwork, at estate sales for a fraction of what you’d pay at a store. You can find estate sale listings in your area on Craigslist as well as Estatesale.com and Estatesales.net.

24. Haggling Over the Price

No matter where you are shopping for furniture, it can be worth trying to bargain the price down a bit. You can ask a seller if the listed price is as low as they can go, if they will offer a discount for buying multiple items, or if there is any wiggle room on the delivery fee.

25. Checking In With Neighbors

You can use Nextdoor, the neighborhood online hub, to let neighbors know what you are looking for and also scroll through the site’s “For Sale and Free” listings to see what your neighbors are selling or giving away.

What Contributes to High or Low Furniture Prices?

Here are some factors that contribute to whether a piece of furniture has a high or low price:

•   Production: Mass-produced pieces are likely to be less expensive than a piece that is made in smaller batches or handcrafted by an artisan.

•   Supply and demand: An item that is popular is likely to be pricier than something that has fallen out of favor.

•   Materials: A solid wood piece, for example, is probably going to cost more than a similar item made of particleboard.

•   Supply chain: If a manufacturer is using, say, a material that is scarce due to supply chain issues, they may have to pay more to obtain it. Those additional charges could be passed along to the consumer.

•   Source: Depending on trade conditions, labor, shipping, and other factors, there could be a price discrepancy based on whether the item was manufactured in the U.S. or elsewhere.

What to Look Out for in Secondhand Furniture

Secondhand furniture can be a great resource when you are buying furniture on a budget. Btw, you can even shop for used furniture online at sites like AptDeco and Kaiyo.

Here, some buying furniture tips when you’re hunting for preloved treasures:

•   Just say no to used mattresses: They can be a repository of stains, smells, dust mites, bedbugs, and more.

•   Inspect for structural damage: Cracks, duct tape, and evidence of past repairs can spell trouble.

•   Avoid upholstered furniture with an odor: Whether mildew, smoke, or pet smells, these smells can be very hard to eliminate.

•   Be wary of painted pieces that might have lead paint: This could include items that were made before 1978, when laws were passed banning lead paint. Crackly, “alligator skin” painted surfaces can indicate lead paint. Also, if you rub your hand over the surface and get a chalky residue, it might be lead.

•   Check for signs of mold: It can look like a patch of dirt that won’t rub away. That’s another health issue you don’t want to deal with.

With these warnings in mind, you could get a real deal by buying secondhand, especially if you use your imagination. Often, with the addition of a coat of paint and new hardware or a slipcover, tired pieces can turn into treasures. Look online for how-to ideas.

The Takeaway

Furnishing a new place can be daunting, especially if you’re shopping on a budget. But by thinking beyond traditional furniture stores and turning to alternatives like flea markets, resale and salvage shops, estate sales, and online marketplaces, you can often score chic and cheap pieces that won’t fall apart in a year or two.

You can also stretch your furniture budget by mixing higher-end investment pieces with cheaper accent decor and sprucing up secondhand finds.

Another way to cut furniture costs is to save up for your purchases in advance. Credit cards and store financing often come with high interest rates, which can significantly increase the overall cost of furnishing your home. Building a furniture fund in advance and paying cash eliminates these added fees.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

How do you buy furniture on a budget?

You can buy furniture on a budget by shopping at estate sales, garage sales, thrift shops, and antique malls, as well as hunting at your usual retailers for floor models and other sale items. Also see what you might be able to score for free via a neighborhood online community or Freecycle.

Is it cheaper to buy furniture in-store or online?

It depends. Online retailers often offer lower prices due to reduced overhead costs and high sales volume. However, brick-and-mortar stores often offer bundled deals, local discounts, or free delivery. In-store shopping also allows you to inspect quality firsthand, possibly saving on return costs or buyer’s remorse. Overall, online can be cheaper, but savvy in-store shopping might offer better value and fewer risks.

What is the cheapest month to buy furniture?

It depends what you’re in the market for. If you’re looking for deals on indoor furniture, consider shopping in February. This is near the end of retail’s winter season, when stores generally try to get rid of inventory to make room for spring lines. If you’re shopping for outdoor furniture, August is often the cheapest month to shop. This is when many retailers are eager to get rid of summer items in order to make space for income merchandise.

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

SOBNK-Q225-063

Your home’s heating, ventilation, and air conditioning (HVAC) system plays an important role in regulating temperature and air quality and keeping your house comfortable. Maintaining or upgrading the ductwork involved can be a small or major expense, depending on the job’s specifics, with costs ranging from $200 to $12,000, typically, and an average price of $1,252.

This guide will give you the basics of how HVAC ductwork operates and key cost considerations.

What Is Ductwork?

In the broadest sense, ductwork can be defined as the channels used for transferring heated and/or cooled air through the rooms and zones of a home or building.

In many cases, HVAC systems need separate supply and return ducts to circulate, filter, and treat air continuously. Supply ducts bring air from the furnace, geothermal pump, or other type of system to blowers and vents to heat or cool an area. On the flipside, return ducts transport untreated air back to the HVAC system.

Some of the most common HVAC systems that need ductwork include:

•   Geothermal or ground source heating and cooling

•   Central air conditioning

•   Furnaces

•   Central gas heating

Between these different systems and a home’s unique characteristics, ductwork can be handled in a variety of ways.

Recommended: How to Winterize a House

Installing New Ductwork

Figuring out how to install ductwork varies in complexity and cost between new construction and finished and furnished homes.

Additional steps that may be necessary for a finished home, such as cutting holes in existing walls, ceilings, and floors, may likely drive up the price of labor and require more materials and time for installation. Depending on where the system is placed, ducts may be run through closets, attics, basements, or up stairwells.

Since different homes require different amounts of ductwork, it’s helpful to think of cost on a linear foot basis. New ductwork can cost about $40 to $65 per linear foot, with the variation coming down to costs for materials and labor.

On average, retrofitting an existing home without ducts can run $2,400 to $6,600.

If you’re building a new home, including plans for HVAC ductwork from the getgo could reduce the overall installation cost. For starters, it would bypass the need to retroactively cut holes throughout a home for ducts and vents.

Additionally, it may be easier to design systems that utilize fewer linear feet since ductwork can be installed before walls and floors are completed.

Replacing Ductwork

If your home is already fitted with ductwork, replacing a portion of it or the entire system might be necessary due to leaks, cracks, or reduced efficiency over time. Since ducts are usually kept out of sight behind walls and ceilings or in attics and basements, accessibility is a key factor in repairing a system.

The replacement process involves both removing the existing materials and installing new ductwork. Replacing ductwork can cost from $25 to $55 per linear foot depending on the location of the existing system and choice of materials for the new ductwork.

Replacing ductwork in a home between 2,000 and 2,500 square feet can run $2,800 to $5,600.

Exposed ductwork can be easier for you to reach and replace on your own, but a professional contractor may be necessary for more complicated repairs and getting to concealed HVAC systems.

Additionally, a skilled professional could likely complete the job in less time than a DIYer might, and time may be a more pressing factor than money in the middle of a cold snap or during a heatwave.

The U.S. Environmental Protection Agency’s EnergyStar program recommends getting quotes from contractors with North American Technical Excellence (NATE) or Building Performance Institute (BPI) certification to get the job done right on the first try.

Recommended: The Cost of Buying a Fixer-Upper

Ductwork Materials

There are several types of materials to consider when planning how to install ductwork in a home. Broadly speaking, ductwork can be categorized as flexible or rigid, with options for materials within each category. Each comes with tradeoffs in terms of price, lifespan, efficiency, and flexibility.

Flexible Ductwork

True to its name, flexible ductwork is characterized by its ability to bend, which can come in handy when installing inside tight and tricky spaces.

In most cases, aluminum or non-metallic materials like plastic, polyester, and PVC are used for flexible ductwork. Here’s how they compare.

Flexible Aluminum: Costs between $4 to $7 per linear foot (excluding labor).

Pros:

•   Ideal for installing in hard-to-reach places

•   Longer lifespan than non-metallic flexible ductwork

•   Generally cheaper than rigid ductwork

Cons:

•   Poor energy efficiency without added insulation and sealing

•   Needs to be reinforced to minimize kinks and bends to improve airflow and efficiency

Flexible Polyester: Costs between $1 to $4 per linear (excluding labor)

Pros:

•   Useful for compact spaces

•   Generally one of the cheapest options

•   Resistant to mold and rust

Cons:

•   Prone to tearing and less durable than flexible aluminum

•   Needs to be reinforced to minimize kinks and bends to preserve airflow and efficiency

Rigid Ductwork

Rigid ductwork can be made from several materials, such as fiberglass and galvanized steel or aluminum. These options can also vary in shape (e.g., cylindrical or rectangular) and size. Additionally, there are differences in cost and features for each type of rigid ductwork.

Sheet Metal Ductwork: Made from galvanized steel or aluminum, these materials usually cost anywhere from $7 to $13 per linear foot.

Pros:

•   Greater durability than other materials

•   Can produce less noise than flexible ductwork

•   Less susceptible to mold and mildew

Cons:

•   Difficult to install if there isn’t space for long, straight lines of ductwork

•   Adding insulation may be required for greater energy efficiency

•   More expensive than flexible ductwork

Fiberglass Duct Board: Consisting of metal ductwork lined with fiberglass, this option costs between $4 and $6 on average.

Pros:

•   Built-in insulation improves energy efficiency and temperature control

•   Easy to cut and seal

•   Well suited for installing between a building’s rafters or floor joists

Cons:

•   Over time, they can release fiberglass particles into the air and be susceptible to mold and mildew

•   Can be difficult to clean

•   Often the most expensive option per linear foot

Recommended: Guide to Unsecured Personal Loans

Sealing and Insulation

Depending on the structure of a home, the type of HVAC system, and other factors, sealing and insulating ductwork may be necessary for health and safety concerns. It might also improve the efficiency of a system, thus potentially lowering your energy use, and may help pay for itself through lower utility bills.

If combustion is involved in your HVAC system, which is generally the case for furnaces and central gas heating, harmful gases like carbon monoxide are generated in the process. Sealing ductwork can further safeguard that such gases are not circulated into the living space of home instead of being emitted outside.

While professional contractors are recommended for sophisticated ductwork insulation and sealing jobs, homeowners may choose to take a DIY approach to sealing near vents and other ductwork connection points with metal tape. These locations, especially vents, can be more accessible and are more common locations for leaks.

How Often Should Ductwork Be Replaced?

While we may immediately notice when the power goes out or the plumbing is backed up, it’s harder to tell if we’re getting the most out of a heating and cooling system.

Maintenance and cleaning can help extend the lifespan of ductwork and heating and cooling systems, but a time will come when replacement is a safer and more financially sound choice.

Erring on the side of caution, you may want to have a heat pump or air conditioner (including ductwork) replaced if it’s more than 10 years old. For a furnace, the estimated lifespan is around 15 years.

To keep your ductwork in tiptop shape, there are some maintenance tasks, like changing air filters monthly, that can be done on a DIY basis. More complex procedures, such as cleaning blowers, checking electrical connections, and lubricating mechanical parts, may be better handled by a professional contractor.

Having a maintenance checklist handy can be helpful for staying on top of your cleaning and maintenance schedule, as well as making sure a contractor checks all the boxes when inspecting your HVAC system.

Recommended: Guide to Buying, Selling, and Updating Your Home

How to Finance Ductwork

Whether you’ve saved in advance or are responding to a sudden home repair cost, there are options available for paying for HVAC ductwork.

Installing energy-efficient heating and air conditioning systems may qualify for a residential energy property tax credit. Additionally, some states and utilities offer incentives and rebates.

Although helpful, these incentives and tax credits still leave a portion of the cost to the homeowner. It can sometimes be difficult to save for potentially pricey repairs like these if a budget is already stretched thin.

One financing option you might consider is an unsecured home improvement loan. This is a personal loan designed to be used for home upgrades and repairs, and typically comes with a fixed interest rate, set term, and regular monthly payments. Unlike a home equity loan or line of credit, personal loans don’t require you to have equity in your home or use your home as collateral.

The Takeaway

Ductwork plays an important role in your home’s HVAC system and keeping your home healthy and comfortable. But, like all parts of a property, it can get old and/or damaged and need repair or replacement. Typically, a ductwork repair will cost $1,252, but the price tag can be considerably higher. If you need help financing ductwork, you might consider a home improvement loan, which is a kind of personal loan.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

How much should new ductwork cost?

How much new ductwork will cost will vary with the size of the project, where it’s located, and whether it’s a repair or a replacement. Average costs stand at $1,252, but the range of costs can run from a couple of hundred dollars to over $10,000.

Does homeowners’ insurance usually cover ductwork?

While insurance policies differ, most homeowners’ insurance does not cover ductwork repair or replacement.

Can I replace my own ductwork?

While you could DIY a ductwork repair, experts in HVAC caution that it’s a complex job requiring a solid understanding of how the system works and building code specifics. It may be wiser to call in a pro.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SOPL-Q225-059

If you fail to make your car payments or otherwise default on your loan, you risk having your car repossessed, or taken back by the lender.

The process of vehicle repossession can be costly. You may be responsible for the deficiency balance on the car, which is the amount you owe on the car, minus the amount the lender sells the car for, as well as additional fees.

Repossession can also have a negative impact on your credit, which can make it harder to qualify for another car loan, as well as credit cards or a mortgage, in the future.

Read on to learn more about car repossession, how to avoid it, and what your options are if it happens.

Why Do Cars Get Repossessed?

When you borrow money to buy a car, or you lease a car, you generally have to agree to specific terms outlined in the contract. You will likely have to agree, for instance, that you will make monthly payments on time and keep adequate insurance on the vehicle.

If you don’t meet those requirements, the lender (or leasing company) has the right to take the car. In some cases, a lender will alert you of your missed payments and attempt to collect payment prior to repossessing the vehicle.

Depending on the loan contract you signed, however, some lenders or leasing companies can take the car back after one missed payment, without any prior notice of late payment, or warning you that your car is going to be repossessed.

If having car insurance is a requirement of your auto contract, as it often is, your car can be repossessed if your auto insurance has lapsed and isn’t being paid.

💡 Quick Tip: Tired of paying pointless bank fees? When you open a bank account online you often avoid excess charges.

What Rights Do I Have if My Car is Repossessed?

While the car does not technically belong to you (the lender typically holds the title until the loan is paid in full), you do have some basic rights if your car is repossessed. Here’s a look at what these rights include.

Your Personal Property

If you have any items of value in the car, such as a laptop or car seat, the bank or leasing company that owns the loan, or the car repossession agency, cannot keep or sell the property found inside the car.

In some states, a creditor must tell you what items were found in the car and how you can get them back.

If you’re having trouble retrieving personal items that are of significant value, you might want to file a complaint , or talk to an attorney about how to get your belongings back or if you can be compensated for them.

Selling Price

If your car is taken and sold, the lender doesn’t have to sell it for the highest possible price, but they are legally required to make an effort to get fair market value for the car and to sell it for a “commercially reasonable” price.

The reason is that the sales proceeds will go toward paying off your debt. It would be unfair to repossess a vehicle and then give it away for very little to somebody else

Also key: If the creditor holds onto the car and doesn’t resell it, you generally will not owe a deficiency balance on the car (which is the amount you owe minus what the car sells for).

Recommended: Tips for Overcoming Bad Financial Decisions

Getting a Car Out of Repo

Should you be interested in getting a repossessed car back, that might be an option. You may be entitled to buy back the vehicle by paying the full amount you owe on the car. This typically includes your past due payments and the remaining debt, along with any fees that accumulated in the repossession process.

Another option for getting your car back is to try to buy back the repossessed car by bidding on it at the repossession sale.

Or, you might instead decide to save up for a car and get a less expensive vehicle.

💡 Quick Tip: Most savings accounts only earn a fraction of a percentage in interest. Not at SoFi. Our high-yield savings account can help you make meaningful progress towards your financial goals.

How Much Does a Car Repossession Cost?

If the lender repossesses your car and then sells it at an auction, the sales proceeds go toward your loan balance. In many cases, the car sells for less than you owe, so your loan is still not paid off. The amount you owe is the deficiency balance.

In addition to the deficiency, you may also have to pay for costs related to repossession. Charges can include expenses for sending a repossession agent, storing the vehicle, and preparing the vehicle for sale.

If the deficiency balance goes unpaid, it can result in a lawsuit against you, along with wage garnishment (a type of automatic paycheck deduction) or a lien against your property.

If you are able to buy the car back before it goes to auction, you will likely be responsible for paying the full amount you owe on the car, which may include your past due payments and the remaining debt, along with any fees that accumulated in the repossession process.

How Car Repossession Affects Your Credit

On its own, a repossession is a red flag on your credit report and can have a serious impact on your scores. A repossession can also stay on your credit report for seven years, beginning with the date of your first late payment.

In addition to the repossession being listed in your credit report, failing to pay your auto loan on time may trigger other negative marks on your credit. For each month you are 30 days or more past due, the lender can report the account as delinquent. If the account was sent to a collection agency, a record of the collection account may also appear in your reports.

Recommended: Guide to Reading & Understanding Your Credit Report

How to Avoid Car Repossession

It can often be easier to prevent a vehicle repossession from happening than trying to fix it after the car has been taken away. Here are some ways you may be able to reduce the risk of repossession if you’re struggling with car payments.

Talking to Your Lender

If you fall behind on your auto loan or you think you soon may, it can be worthwhile to reach out to the lender to discuss what options you may have.

There is a chance your lender will allow you to defer your loan payments for a period of time or help you come up with another solution to allow you to keep your car. This shows good faith as you try to remedy your situation.

If you and the lender are able to come to an agreement about amending or skipping payments, it’s a good idea to get the new terms addressed in writing to avoid problems down the line.

Recommended: ​​How to Get Caught up on Late Payments

Refinancing Your Car Loan

If you’re struggling to pay your auto loan, refinancing might help get your payment to an affordable level so you can continue to pay on time. Refinancing entails paying off your current auto loan with a new car loan. If you are approved for a new loan, refinancing could help you avoid repossession by satisfying what you owe on your existing loan and starting fresh with a new lender.

Just keep in mind that auto loan refinancing can lead to higher costs due to lender fees and additional interest if you extend the loan term.

Considering Voluntary Repossession

If your lender won’t accept late payments and demands that you return the car, voluntarily repossessing (or surrendering) the car may be a better option than having it taken away.

Turning in your car can reduce the creditor’s expenses and, in turn, reduce how much you’re required to pay (though you’ll still likely be responsible for late payments, late fees, and possibly a deficiency balance). A voluntary repossession also gives you more control over when you give up your car than having the car suddenly taken away from you.

Your creditor may still enter the late payments and repossession on your credit report, where it can remain for seven years. However, a “voluntary surrender” can be less damaging to your credit than a “repossession.”

Protecting Your Credit After a Car Repossession

While a repossession can negatively impact your credit report, it won’t be forever. As time passes, and as you handle your other credit obligations responsibly, the impact on your credit score can lessen.

These moves can help minimize the damage and rebuild your credit over time:

•   Paying off any outstanding debt on your car loan

•   Making payments on other debts (such as student loans) on time

•   Maintaining low balances on credit cards and paying them off in full every month

•   Making timely payments for all of your bills (so none are ever sent to debt collection agencies)

Managing your money responsibly shows future lenders that you can make wise financial decisions and will be trustworthy when it comes to paying off loans and credit in the future.

The Takeaway

If you have missed payments on your vehicle or let your car insurance lapse, the lender can repossess your car and sell it at an auction. You will then likely have to pay the difference between what the car sells for and what you still owe, plus various additional fees.

Depending on your loan or lease contract, you may have time to make the missing payments and retrieve your car before it’s sold at auction.

Either way, a car repossession can be costly, and also have a negative and lasting impact on your credit.

One of the best ways to avoid car repossession is to stay on top of your car payments, making them in full and on time each month. Setting up a monthly budget can help you make this happen.
Another good safeguard is to wait until you’ve saved up for a substantial downpayment on a car before you buy, or use that money to go with a more affordable used car and pay for it in full.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

How long does it take to repossess a car?

The process to repossess a car can vary, but lenders typically start car repossession when you’re in default, which is usually at least 60 days past due on a payment. Lenders may send multiple notices and offer a grace period, but if you fail to make payments or reach an agreement, they can send a repo agent. The exact timeline depends on the lender’s policies and state laws, so it’s crucial to communicate with your lender and understand your specific situation.

What happens when your car gets repossessed?

When your car is repossessed, it is typically towed away by the lender. You lose possession of the car and the right to drive it. Rules vary by state, but the lender is generally required to notify you of your options to get the car back and must hold the vehicle for a certain number of days before selling it. During this time, you may be able to reclaim the car by making arrangements to pay off the balance owed as well as any fees associated with the repossession process.

How many missed payments before repo?

While it’s not common, an auto lender can repossess (or “repo”) a vehicle after just one missed payment. Generally, though, auto lenders will wait until at least two or three payments before sending a repo agent. The number of missed payments allowed before repo varies by lender and will be outlined in the loan agreement.

To avoid repossession, it’s important to reach out to your lender as soon as you run into trouble repaying your car loan. The lender may be willing to offer options like payment deferment or interest-only payments to help you avoid defaulting on the loan.

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
This article is not intended to be legal advice. Please consult an attorney for advice.