Life throws curveballs and sometimes those curveballs come in the form of unexpected financial hurdles. If you’re facing a financial emergency and can’t cover this month’s car payment you might be wondering, “Can I push my car payment back?” The answer, thankfully, is often yes, but it’s not as simple as flipping a switch.
Understanding Deferment: A Lifeline in Times of Need
Deferment, in the context of car loans, refers to a temporary suspension or reduction of your payments. It’s like hitting the pause button on your loan giving you a much-needed breather when your finances take a hit. However, it’s important to remember that deferment isn’t a free pass. Skipped or reduced payments will be added to the end of your repayment term and interest will continue to accrue. Additionally, some lenders may charge a fee for each skipped payment.
Eligibility: Not a Guarantee, but a Possibility
Not all lenders offer deferment options, and even those that do may have specific eligibility requirements Some common factors lenders consider include:
- Current on Payments: Most lenders require your loan payments to be current, with no previous missed payments, before they’ll allow a deferment.
- Deferment History: Lenders may limit the number of deferments you can take over the life of the loan.
- Hardship Documentation: You may need to provide documentation, such as pay stubs or bills, to support your request for deferment.
Navigating the Deferment Process: A Step-by-Step Guide
The process for requesting a deferment can vary depending on your lender. Here’s a general outline:
- Know Your Options: Review your loan agreement and lender’s website to understand their deferment policies. Some lenders may offer a “skip a payment” option, while others require a formal request.
- Prepare Your Documentation: If your lender requires a formal request, gather documentation to support your hardship, such as bills or pay stubs.
- Contact Your Lender: Reach out to your lender via phone, email, or online portal to request a deferment. Be prepared to explain your situation and provide any necessary documentation.
Alternatives to Deferment: Exploring Your Options
While deferment can be a valuable tool, it’s not the only option available. Here are some alternatives to consider:
- Change Your Payment Due Date: If the timing of your payment is causing issues, consider asking your lender to adjust your due date.
- Sell the Car: If you can’t afford the car anymore, selling it and using the proceeds to pay off the loan might be a viable option.
- Refinance Your Loan: Refinancing can lower your monthly payments, making them more manageable.
- Transfer the Loan: In some cases, you may be able to transfer your loan to someone else who qualifies.
- Voluntary Surrender: If you can’t afford the car and other options aren’t feasible, you may consider voluntarily surrendering the car to the lender.
Remember: Deferment is a temporary solution, not a long-term fix. It’s crucial to address the underlying financial issues that led to the need for deferment to avoid future struggles.
Additional Resources:
- Experian: https://www.experian.com/blogs/ask-experian/what-happens-if-you-defer-a-car-payment/
- Credit.org: https://www.credit.org/blog-posts/know-your-options-how-to-skip-or-defer-a-car-payment
Notice: This information is not intended to be financial advice; rather, it is for educational purposes only. Please consult with a qualified financial professional for personalized guidance.
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FAQ
Can I push my car payment back a month?
What is it called when you push a car payment back?
How many times can you defer a car payment?
Can you push off a car payment?
What if I need to defer car payments?
If you need to defer some payments, talk to your lender as soon as possible. A deferment pushes the pause button on your car payments. One could last for one month or even four months – it depends on the lender and your loan contract. Most often, the payments that were deferred are added to the back end of your car loan.
Does skipping car loan payments mean you need to pay back?
Yes, skipping your car loan payments does not mean you need not pay it back. Deferment only means that you are excused from paying the amounts for a certain period – after which you must resume paying them. Additionally, your loan term will be extended to account for your skipped payments and the interest accrued on them.
What happens if you fall behind on your car payments?
Falling behind on your payments can have serious consequences. Payment history makes up 35% of your credit score and a loan default will remain on your credit report for up to seven years. Avoiding the problem will only make it worse. Lenders don’t want the hassle of repossessing your car and are willing to negotiate to help you.
What happens if I miss my first car payment?
This applies to first car payments as well as subsequent payments. So you won’t be penalized if you miss your payment by a few days, as long as you pay it within a lender’s grace period. Some lenders also offer a 60-day no-payment option, meaning that your first payment can be due 60 days after you get the loan.