Can You Defer Car Payments?

Sometimes, unexpected things happen in Beavercreek, and you may find yourself in a financial situation that wasn’t what you had planned. Maybe you need to defer a car payment one month if you’ve behind on your finances. But, can you defer a car payment? In most cases, many lenders will allow a deferment on a car payment until the end of the loan. Learn how to make a payment deferment on a car loan with the finance department at Key Chrysler Jeep Dodge Ram FIAT.

How to Make a Payment Deferment on a Car Loan

If you’re like other Springfield drivers, then you might be wondering, “What is a deferment on a car loan?” A deferment is something that allows you to essentially skip a payment on your car loan without having your car repossessed. Depending on the lender, they may have a built-in deferment policy, but you will need to speak directly to your lender to get approval for a payment deferment on a car loan. Be honest about your financial situation with your lender as they’ll need to know the details. Keep in mind that you may still be required to pay interest when you defer a loan payment.

The number of times you can defer a loan payment will also depend on your lender, which is why you need to be open and honest with them. Some lenders only allow one deferment, but some lenders do offer more, so you’ll need to ask them directly.

Pros and Cons of Deferring a Loan Payment

One of the main reasons to defer a car payment is to avoid any penalty if you can’t make a payment. But, before you consider deferring a loan payment, think about all of your other options. While deferring a loan payment should be your last option, here are some pros and cons to making a deferment on your loan payment:

Pros: 

• Deferring payments can help you avoid getting your vehicle repossessed, which can severely lower your credit score.
• Deferments can also help you avoid any late fees and penalties.
• Deferring your payment can give you some time to possibly sell your vehicle if it still has some equity left.
• Deferring your loan payment can give you more time to refinance your car loan.

Cons:

• Your payment doesn’t go away because you defer it. You’ll still have to pay it later on down the line.
• As mentioned, you may still have to pay interest even though you defer a loan payment.
• When you defer a payment, your loan still accrues interest, so you may end up paying more interest in the long run when you defer a payment.

To find out if deferring a payment on your car loan is the right choice for you, talk with your Wilmington lender to discuss your options.

Get the Financing You Need at Key Chrysler Jeep Dodge Ram FIAT

Can you defer a car payment? It depends on your lender, so you need to ask them directly. Key Chrysler Jeep Dodge Ram FIAT is located in Xenia, but you can contact us online to answer all of your financing questions and learn more car-buying tips.