Most lenders allow one to three deferrals per loan, but the exact number depends on your contract and lender
The number of times you can defer a car payment is not set by law — it is set by the lender who holds your loan. Some lenders allow one deferral for the life of the loan. Others allow up to three or four. A few have no stated limit but require you to ask each time and may deny you. The only way to know your limit is to check your loan agreement or call your lender directly and ask: "How many payment deferrals am I allowed?"
When you defer a payment, you are not erasing it — you are moving it to the end of your loan. The payment you skip this month gets added to your final payment or spread across your remaining months. This costs you money in the long run because you will pay interest on that deferred amount for longer. But it can help you avoid default when cash is tight.
Deferrals are different from skipping a payment without permission. If you miss a payment without arranging a deferral first, your lender can report you to credit bureaus, charge you a late fee, and eventually start repossession proceedings. A deferral is an agreement — you ask first, the lender says yes or no, and both of you follow the terms.
Key Takeaways
- Your loan agreement or lender's customer service line will tell you the exact number of deferrals you are allowed during the life of your loan.
- Each deferral moves your skipped payment to the end of your loan, meaning you pay interest on it for longer and your final payment grows larger.
- You must request a deferral before the payment is due — asking after you have missed it may not be treated as a deferral and could damage your credit.
- Some lenders allow deferrals only in specific situations, such as job loss or medical hardship, so check whether your reason matters to them.
- If you have used all your allowed deferrals, you may be able to ask for a loan modification, forbearance, or refinancing instead.
Where to find your deferral limit
Your loan agreement — the document you signed when you took out the car loan — should state how many deferrals you are allowed. Look for a section called "Payment Deferral," "Forbearance," or "Hardship Options." If you no longer have the paper copy, you can request it from your lender or read it from your online account if your lender offers one.
If you cannot find it in your agreement, call your lender's customer service number. This is usually on your monthly statement or on the back of any payment coupon they send you. Tell them you want to know how many payment deferrals you are allowed under your loan. Write down the answer and the date you called, in case you need to reference it later.
Some lenders also post this information on their website under "Loan Terms," "Hardship Programs," or "Payment Options." A quick search for "[Your Lender Name] payment deferral policy" may save you a phone call.
What happens when you use a deferral
When you request a deferral, your lender will ask you to confirm the month you want to skip. They will then tell you in writing how that payment will be handled — whether it gets added to your final payment, spread across your remaining months, or added to the end of your loan term. Read this carefully, because the cost to you depends on how they structure it.
If your payment is $400 and you defer one month, you might end up paying an extra $400 plus interest on that $400 for however many months remain on your loan. If your loan has 24 months left, that deferred payment could cost you $420 or more by the time you pay it off, depending on your interest rate. This is why deferrals are a tool for temporary hardship, not a way to lower your payment long-term.
Your lender will usually send you a confirmation letter or email showing the new payment schedule. Keep this document. If a payment is reported late or your account is flagged, you can show this letter to prove you had an agreement in place.
Timing matters: request before the payment is due
You must request a deferral before your payment is due, not after you have missed it. If you wait until after the due date, your lender may treat it as a late payment rather than a deferral. A late payment can be reported to credit bureaus and damage your credit score, even if the lender later agrees to defer it.
Contact your lender as soon as you know you will have trouble making a payment. Many lenders have a grace period of 10 to 15 days after the due date, but do not rely on this — it is meant for mail delays, not for deciding whether to ask for help. The safest approach is to call at least a week before your payment is due.
If you have already missed a payment, ask your lender whether they will still treat it as a deferral or whether it will remain on your record as late. Some lenders will retroactively explore a deferral if you ask within a few days of missing the payment, but this is not may provide.
What to do if you have used all your deferrals
If you have already used the number of deferrals your loan allows and you are still struggling to pay, you have other options. A loan modification is a permanent change to your loan terms — your lender might lower your interest rate, extend your loan term to lower your monthly payment, or reduce the principal balance. This is different from a deferral because it changes the loan itself, not just moves a payment around.
Forbearance is another option. It is similar to a deferral but usually lasts longer — sometimes three to six months — and may not count against your deferral limit. During forbearance, you pay a reduced amount or nothing at all, and the unpaid portion is added to your loan. Forbearance is typically offered when you have a documented hardship, such as job loss or a medical emergency.
You can also explore refinancing, which means taking out a new loan to pay off your current car loan. If your credit score has improved or interest rates have dropped since you took out the original loan, refinancing might lower your monthly payment. However, refinancing usually resets your loan term, so you may pay for longer overall.
If none of these options work and you cannot afford the car, you can return it to the lender — this is called voluntary surrender. This will damage your credit, but it may be better than defaulting and having the car repossessed. Talk to your lender about your options before you reach this point.
Hardship requirements: some lenders ask why you need a deferral
Some lenders will defer a payment for any reason, while others require you to show a specific hardship. Common hardships include job loss, medical emergency, divorce, or a major unexpected expense. If your lender requires a reason, they may ask you to provide documentation — a termination letter from your employer, a medical bill, or a court order.
Check your loan agreement or ask your lender whether they have a hardship policy. If they do, ask what counts as hardship and what documents they need. Having this information before you call makes the process faster.
If your lender denies your deferral request because you do not meet their hardship criteria, ask whether you can request forbearance or a loan modification instead. These programs sometimes have different rules and may be available even if deferrals are not.
How deferrals affect your credit
A deferral that you arrange in advance — before the payment is due — should not be reported to credit bureaus as a late payment. Your account will show that you have an active loan, and your payment history should remain clean. However, if the deferral is reported, it may appear as a "deferred payment" or "arrangement to pay," which some lenders view differently than a regular on-time payment.
The safest approach is to ask your lender in writing whether the deferral will be reported to credit bureaus and how it will appear on your credit report. Get their answer in writing — email is fine — so you have proof of what they told you.
If you miss a payment without arranging a deferral first, it will almost certainly be reported as late. This can lower your credit score by 100 points or more, depending on how late the payment is. This is why requesting a deferral before the due date is so important.
Frequently Asked Questions
Can I defer a payment if I am already behind on my loan?
It depends on your lender and how far behind you are. If you are one or two months behind, some lenders will work with you on a deferral or forbearance plan. If you are further behind, your lender may require you to catch up first or may offer only a loan modification. Call your lender when ready to discuss your situation — the longer you wait, the fewer options you will have.
Do I have to pay interest on a deferred payment?
Yes. When you defer a payment, the amount you skip is added to your loan balance, and you continue to pay interest on it. This means a deferred payment costs you more than if you had paid it on time. The exact amount depends on your interest rate and how long the payment remains unpaid.
What if my lender says I cannot defer because I have not had the loan long enough?
Some lenders have a waiting period — you may not be allowed to defer until you have made a certain number of payments, such as six or twelve. If this applies to you, ask whether forbearance or a loan modification is available instead, or whether you can defer after you meet the waiting period.
Can I defer multiple payments at once?
Some lenders allow you to defer more than one payment in a single request, but this usually counts as using multiple deferrals from your allowed total. For example, if you defer two months at once, you may have used two of your three allowed deferrals. Ask your lender how they count this before you request it.
What happens if I defer a payment and then lose my job?
If your situation gets worse after you defer a payment, contact your lender again. Explain what has changed and ask about forbearance, loan modification, or other hardship programs. Lenders often have more flexibility when you communicate with them early and show that you are trying to stay current.