Yes, you can defer a car payment, but only if your lender agrees and you ask before the payment is due
A payment deferral means pushing your car payment to the end of your loan instead of paying it now. Your lender is not required to offer this—it is their choice. Some will, some won't, and the ones that do usually have limits on how many times you can do it or how long you can defer. The key is calling your lender as soon as you know you cannot pay, not after you miss the important date. Once a payment is officially late, a deferral becomes much harder to arrange.
Deferrals are different from skipping a payment or getting a forbearance. When you defer, you are not forgiven the money—you owe it later. When you skip, you may damage your credit when ready. A forbearance temporarily pauses payments but usually requires you to make them up in a lump sum or add them to the end of the loan. A deferral straightforward moves the due date backward.
Key Takeaways
- Contact your lender before your payment is due to ask about deferral options; calling after the due date makes approval much less likely.
- Most lenders allow one or two deferrals per year, though some cap the total number you can use over the life of the loan.
- When you defer a payment, the amount is usually added to the end of your loan, meaning you pay interest on it for longer.
- Deferrals typically do not hurt your credit score if approved before the payment is late, but missing the important date without approval will.
- If your lender denies a deferral, ask about forbearance, a loan modification, or a temporary payment reduction as alternatives.
How to request a deferral from your lender
Call the customer service number on your loan statement or bill. Tell them you cannot make the payment on time and ask if they offer payment deferrals. Have your account number and loan details ready. Be honest about why you cannot pay—job loss, medical emergency, or temporary income drop—because lenders are more likely to work with you if they understand the situation is temporary.
Ask these specific questions: How many payments can I defer in a year? Can I defer more than one payment at a time? Will the deferred amount be added to the end of the loan or rolled into a new payment schedule? Will I pay interest on the deferred amount? Is there a fee for requesting a deferral? The answers vary by lender and by loan type, so do not assume all lenders work the same way.
If the lender says yes, ask them to send you the deferral agreement in writing before you sign anything. The agreement should state the new due date, the total amount owed, and whether interest continues to accrue. Do not rely on a verbal promise. Once you have the written agreement, keep it with your loan documents.
What happens to your credit when you defer a payment
If your lender approves the deferral before the payment is officially late, the deferral itself does not show up on your credit report as a negative mark. Your payment history remains clean. However, if you miss the important date and then ask for a deferral after the fact, the late payment may already be reported to the credit bureaus, and the deferral will not erase it.
The timing matters enormously. A payment is typically considered late once it is 30 days past due. Some lenders report to credit bureaus when ready; others wait 30 days. If you call on day 5 of being late and get a deferral approved, you may still see a late mark on your report depending on when the lender reported it. If you call before the due date passes, you avoid this problem entirely.
Limits on how many times you can defer
Most auto lenders allow one or two deferrals per year. Some allow up to four over the life of the loan. A few have no stated limit but will deny repeated requests. The rules depend on your lender and your specific loan agreement, so check your paperwork or ask when you call.
If you have already used your deferrals for the year and cannot pay, tell the lender that. Ask about other options: a temporary reduction in the monthly payment, a forbearance period, or a loan modification that extends the term. Some lenders will work with you on one of these alternatives even if deferrals are exhausted.
The cost of deferring a payment
When you defer a payment, you usually do not pay a fee to the lender, but you do pay a cost in interest. The deferred amount is added to the end of your loan, which means you carry a larger balance for longer and pay interest on it for the extra months. If you defer a $400 payment on a loan with a 6% interest rate, you will pay roughly $24 more in interest by the time the loan is paid off, depending on how many months remain.
Some lenders add the deferred payment to your final balloon payment instead of spreading it across remaining months. Others roll it into your regular payment schedule. Ask which method your lender uses, because it affects how much extra you pay in interest and how your payment changes.
What to do if your lender denies a deferral
If the lender says no to a deferral, ask why. Some lenders deny deferrals to borrowers who are already behind on payments or who have used deferrals recently. If that is your situation, the lender may offer forbearance instead, which temporarily pauses payments for a set period (usually one to three months) but requires you to resume payments afterward or make up the missed amount.
You can also ask about a loan modification, which changes the terms of your loan—usually by extending the term to lower the monthly payment. This is different from a deferral because it is a permanent change, not a temporary one. Some lenders will modify a loan if you are struggling, especially if you have been a good customer up to that point.
If the lender will not budge on any of these options and you cannot pay, do not ignore the debt. Contact a nonprofit credit counselor through the National Foundation for Credit Counseling (NFCC) at nfcc.org. They can review your situation and sometimes negotiate with your lender on your behalf. This service is usually free or very low cost.
Deferral vs. forbearance vs. skipping a payment
| Option | What happens to the payment | Credit impact if approved | When to use it |
|---|---|---|---|
| Deferral | Moved to the end of the loan; you owe it later | None, if approved before due date | You expect to have money in a few months |
| Forbearance | Paused temporarily; must resume or pay in lump sum | None, if approved before due date | You need a longer break; can handle payments later |
| Skipping a payment | You do not pay; lender reports it as late | Negative mark on credit report after 30 days | Never—only if you have no other choice |
Frequently Asked Questions
Can I defer a car payment if I am already late?
It is much harder, but sometimes possible. Call the lender when ready and explain the situation. If the payment is only a few days late and you have a good history with the lender, they may still approve a deferral. If it is 30 days or more late, the lender will likely deny it and may instead offer forbearance or a loan modification. Do not wait—call as soon as you realize you cannot pay.
Will deferring a payment hurt my credit score?
No, if the lender approves it before the payment is due. The deferral does not appear on your credit report. However, if you miss the due date and then ask for a deferral, the late payment may already be reported, and the deferral will not remove it. The key is asking before the important date.
What if I defer a payment and then cannot afford the new due date?
Call the lender again and ask about a second deferral, forbearance, or a loan modification. Most lenders allow at least one more deferral if you have not exceeded your annual limit. If you have, ask about other options. If you cannot pay and the lender will not work with you, contact a credit counselor or explore whether you can refinance the loan with a different lender.
Does the deferred payment get added to my monthly payment or to the end of the loan?
It depends on your lender. Some add it to the final payment; others spread it across your remaining months. Ask your lender which method they use before you agree to the deferral, because it affects how much extra you pay in interest and how your budget changes.
Can I defer a payment on a lease?
Lease agreements are stricter than loans, and most leasing companies do not offer deferrals. Call your leasing company and ask, but be prepared for a no. If they deny it, ask about forbearance or a temporary payment reduction. If they will not help, contact a credit counselor for guidance on your options.