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Depending on your lender and how late your payment is, there may be different repercussions if you miss your first car payment. In general, the consequences of skipping your first auto payment are the same as those of skipping any other one: you risk having your credit report negatively impacted, paying late fees, and, in the worst situation, your vehicle may be repossessed.
Since the loan is new, it might seem unlikely that you would miss your first payment, but it has happened before. For example, you might miss your first car payment due to unanticipated financial difficulties or ignorance of your loan terms. However, understanding the repercussions of doing so can help you mitigate any potential impact. Heres what to know.
Congratulations on your new car! But with the excitement of a new ride comes the responsibility of making payments. So, when exactly will that first payment be due?
The Short Answer:
Typically your first car payment is due 30 to 45 days after you sign the paperwork. However, the exact timing can vary depending on the lender and the terms of your loan agreement.
The Long Answer:
Let’s delve deeper into the factors that influence the timing of your first car payment:
1. Lender Policies:
Different lenders have different policies regarding the first payment due date. While some lenders may give you up to 45 days, others may require the first payment within 30 days. It’s critical to verify the precise due date by consulting your loan agreement or getting in touch with your lender.
2. Loan Terms:
The terms of your loan agreement can also impact the first payment due date. For instance, if you choose a bi-weekly payment schedule, your first payment might be due sooner than if you opted for a monthly schedule.
3. Down Payment:
The size of your down payment can also play a role. A higher down payment will result in a smaller loan amount and possibly a slightly later first payment due date.
4. Loan Processing Time:
It’s important to note that the loan processing time can also affect the first payment due date. After you sign the paperwork, it may take a few days for the lender to process the loan and send you the payment information.
5. Grace Period:
Some lenders offer a grace period, which is a short window of time after the due date when you can still make your payment without incurring a late fee. However, it’s essential to remember that grace periods are not guaranteed, and it’s always best to make your payments on time.
Tips for Making Your First Car Payment:
- Mark the due date on your calendar: This will help you avoid missing the payment and incurring late fees.
- Set up automatic payments: Many lenders offer automatic payment options, which can help ensure that your payments are made on time.
- Make extra payments if possible: This can help you pay off your loan faster and save money on interest.
Additional Resources:
- FinanceBand: https://financeband.com/how-long-after-you-buy-a-car-is-your-first-payment-due
- Quora: https://www.quora.com/When-can-I-expect-to-make-a-first-payment-when-financing-a-car
Remember:
Making your car payments on time is crucial for maintaining good credit. If you have any questions about your first payment due date or any other aspect of your car loan, don’t hesitate to contact your lender.
You have a grace period
There is usually a grace period of 10 to 15 days on auto loans, during which you are not penalized for being late. This applies to first car payments as well as subsequent payments. Therefore, as long as you make your payment within the lender’s grace period, you won’t be penalized if you miss it by a few days.
Additionally, some lenders provide a 60-day no-payment option, which allows you to make your first payment 60 days after obtaining the loan. This allows you some leeway and prevents you from having to make payments as soon as you purchase or refinance a vehicle. Some lenders even offer no-payment options for up to 90 days.
You could incur late fees
You might be charged a late fee for an overdue or missed payment, depending on your lender, the terms of the loan, and the state. Late fees vary but will usually be a percentage of the total amount due. Note that some lenders dont charge late fees at all.
It’s critical to review your loan terms to determine whether late or missed payments will result in fees and how much they will cost.
You SIGNED A CONTRACT You PURCHASED a CAR | CHAD Makes It Easy to Understand – Car Biz Tips | Part 1
FAQ
How do I know when my first car payment is due?
How long can you delay your first car payment?
How long should it take to pay off your first car?
How long after a car loan can you pay a loan?
However, you can often adjust the payment date to your schedule. For example, you could pay 45 days after the loan, as long as you’re okay to accrue a bit more interest on the loan. If you want to make sure you’re on top of all your car expenses, you may also want to consider your car insurance.
When is my first loan payment due?
Kudos to you for being on top of your payments! In general, your first payment is due 30 days after you sign for the . However, you can often adjust the payment date to your schedule. For example, you could pay 45 days after the loan, as long as you’re okay to accrue a bit more interest on the loan.
What happens if I’m Late on my first car payment?
The first payment default rule is simple: If you’re late on your first car payment, your lender reports this to the credit bureaus. There are other terms your lender may have in place. Some lenders will start the repossession process if the first payment is late. They will consider the loan defaulted after only missing the first initial payment.
What if my car loan payment is 30 days late?
It’s especially important to talk to them before your payment is 30 days late and likely to be reported to the credit bureaus. Some lenders have auto loan hardship options — such as defering a payment to the end of the loan — which can help you catch up and avoid having an auto loan delinquency on your credit report.