Can You Defer a Car Payment?

Writing A Check To Pay Your Car Payment

If you are currently in a financial situation where you are unable to make your monthly car payment, you are probably wondering, “Can you defer a car payment?” Most of the time, yes. Many lenders let borrowers defer a car payment to the end of their loan when necessary. Learn reasons to defer a car payment, what is a deferment on a car loan, and how to defer your payment from the finance center at Don Franklin Auto.

Payment Deferment on Car Loan – What is it?

First, what is a deferment on a car loan? A deferment allows borrowers to stop making payments on their auto loans in the future, which also helps avoid repossession. There are auto loans with a built-in deferment policy. With that said, payment deferment on a car loan can’t happen without speaking to your lender and getting their approval.

If you know you can’t make your next car payment, do not waste any time and speak to your lender. There are lots of reasons to defer a car payment, but it’s essential to have an honest conversation about your current financial situation, including details about why you’re asking for deferment. Depending on your lender, you may still be required to pay interest when you defer a payment.

How Often Can You Defer a Car Payment?

Each lender offers different deferment policies, so the number of payment deferments on a car loan will vary. Some lenders may only allow one deferment, while others will allow two, or sometimes more. Whether this number is yearly or across the entire loan term also varies by lender. Be sure to ask these questions when asking about a loan deferment.

Is a Car Deferment the Right Option?

Before going forward with the payment deferment on a car loan, think about whether or not this is the best and smartest financial solution. Missing a car payment is not a viable option, but maybe family members or close friends can loan you money to put toward the car payment.

Here are some advantages and disadvantages of deferring a car payment to make sure you’re making the right decision:


  • Deferring payments allow you to avoid the risk of repossession. (Repossession not only leaves you without your vehicle, but it can also ruin your credit score.)
  • You can avoid paying substantial late fees.
  • If you still have equity in your car, deferring your payment gives you time to sell it.
  • Deferring your payment allows you extra time to refinance your auto loan, which can help mitigate issues with making your payments in the future.


  • Your payment is not eliminated. It’s sent to the end of your loan. You will be responsible for taking care of it.
  • As mentioned above, some lenders may require you to pay interest for the month when you defer a payment.
  • Your loan is still accruing interest during your deferment, so you could end up paying more interest throughout your loan than you would have if the payment was made on time.

Get More Financing Tips From Don Franklin Auto

If you have additional questions about car financing or your current auto loan, feel free to contact us at Don Franklin Auto. Be sure to refer to our financing and insurance information hub for more answers to your questions, such as what is the difference between used and certified pre-owned, should I buy or lease, and can I lease a car with bad credit?

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