Can You Defer a Car Payment?

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Can you defer a car payment, and, if so, how do you make one? Sometimes, life throws us a curveball and you may be behind on your finances. In that case, you may need to make a deferment on your car loan. Most Dayton lenders and lenders in other areas do allow for a payment deferment on a car loan if it’s necessary and you simply can’t pay. Learn about how to make a deferment on your car loan with the finance department at New Carlisle Chrysler Jeep Dodge Ram.


Making a Payment Deferment on a Car Loan

What is a deferment on a car loan? If you’re like other Springfield drivers, you may be unfamiliar with the concept, but a deferment on a car payment is basically asking your lender to skip a monthly payment. Having the lender approve this will help you avoid your vehicle being repossessed when not making a payment for a month. Some auto loans have built-in deferment policies, but you’ll need to speak directly with your loan provider to get their approval either way.

It’s important to be open and honest with your lender when asking to defer a car payment. This way, they can have a clear understanding of your current financial situation. Some lenders may only approve one deferment, or they may approve multiple depending on their policies and your current situation. It’s also important to note that even though you defer a car loan payment, you may still be required to pay interest.

Reasons to Defer a Car Payment

It’s important to weigh all other options before deciding to defer a car payment. You can always ask your Huber Heights family and friends for help if you need to. However, if push comes to shove and you absolutely have to defer a car payment, here are some pros and cons to consider:

Pros

  • You avoid having your vehicle repossessed when you defer a car payment. This not only allows you to still have your vehicle but prevents any damage to your credit score.
  • Deferring a car payment can help you avoid any substantial late charges.
  • Deferring a car payment can help give you some extra time to sell your vehicle if your vehicle still has some remaining equity.
  • When you defer a car payment, you also have some extra time to refinance your auto loan. You can easily apply for financing online at New Carlisle Chrysler Jeep Dodge Ram.

Disadvantages

  • When you defer a payment, the payment still has to be made later on as it doesn’t just go away.
  • As mentioned, some lenders may require you to still pay the interest for the month even if you don’t make the payment.
  • Your loan still accrues interest even if you defer payment for a month. This could mean you end up paying more interest in the long run.

Get the Advice You Need from New Carlisle Chrysler Jeep Dodge Ram

Can you defer a car payment? It depends on your lender, so you’ll need to ask them directly. We’re located in New Carlisle, but you can contact us online to answer all of your car-buying questions.

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New Carlisle Chrysler Jeep Dodge Ram 39.9479217, -84.0224264.