Most lenders allow one to three deferrals per loan, but the exact number depends on your contract and lender
There is no federal limit on how many times you can defer a car payment. Instead, your loan agreement spells out what your specific lender permits — usually somewhere between one and three deferrals over the life of the loan. Some lenders allow only one; others build in up to three. A few have no stated limit but will deny you after a pattern emerges. The only way to know your actual number is to call your lender or pull out your loan documents and search for "deferment," "forbearance," or "payment postponement."
Deferrals are not forgiveness. When you defer a payment, the lender pushes it to the end of your loan, extending your payoff date and adding interest. You are not skipping the payment — you are moving it. After you use your allotted deferrals, you cannot request another one, and missed payments after that point trigger late fees, credit damage, and eventually default proceedings.
Key Takeaways
- Your loan documents state how many deferrals you are permitted; most contracts allow between one and three over the life of the loan.
- Each deferral extends your loan term and adds interest, so the payment you skip now costs more when it comes due at the end.
- Once you exhaust your deferrals, the lender will not grant another one, and missed payments after that point trigger late fees and credit reporting.
- Lenders track deferrals by loan, not by borrower, so having multiple car loans does not give you extra deferrals on each one.
- Some lenders require you to request a deferral before the payment is due; others allow requests after you miss it, but waiting damages your credit score.
Where the limit comes from: your loan agreement
Your promissory note or loan agreement is the document that sets the deferral limit. It is usually a 5- to 10-page packet you signed when you bought the car, often at the dealership or through an online lender. The section covering deferrals may use the term "deferment," "forbearance," "payment postponement," or "skip-a-payment plan," depending on the lender's language.
If you no longer have the physical copy, you can request it from your lender. Call the customer service number on your bill or statement, or log into your online account. Ask for a copy of your original loan agreement or promissory note. The lender must provide it within a few business days. Once you have it, search for the word "defer" or scan the section titled "Payment Terms" or "Borrower Rights."
If your agreement does not mention deferrals at all, your lender may still offer them as a courtesy during hardship, but you have no contractual right to one. In that case, a deferral is a one-time negotiation, not a may provide option you can use multiple times.
What happens to your loan when you use a deferral
When you defer a payment, the lender does not erase it. Instead, they add it to the end of your loan term. If you have 48 months left on your loan and you defer one payment, you now have 49 months left. That deferred payment still accrues interest, so by the time it comes due at the end of your loan, you will owe more than the original amount.
Example: Your regular payment is $350. You defer one payment in month 12. That $350 is now due in month 49 instead of month 12, and interest continues to accrue on it. Depending on your interest rate, you might end up paying $365 or $375 by the time the loan ends. You have not saved money — you have borrowed more time and paid for it.
Your credit report will show the deferral if the lender reports it to the credit bureaus. Some lenders report deferrals as neutral (no impact), some as a note in your payment history, and some as a minor negative mark. The impact is usually smaller than a late payment, but it is not invisible. If you are trying to keep your credit score stable, deferrals should be a last resort, not a first option.
Timing: when you can request a deferral
Some lenders require you to request a deferral before your payment is due. Others allow requests up to 15 or 30 days after the due date. A few will negotiate even after you are 60 days late, though by that point your credit has already taken a hit. Check your loan agreement or call your lender to learn their window.
If you know a hardship is coming — a job loss, medical bill, or temporary income drop — request the deferral as soon as possible. Lenders are more likely to grant one if you ask proactively rather than after you have already missed a payment. If you wait until after the due date, you may still get the deferral, but the late payment will already be reported to the credit bureaus.
Once you request a deferral, the lender usually responds within 3 to 5 business days. Some approve it when ready; others ask for documentation of hardship (a termination letter, medical bill, or bank statement showing reduced income). Keep records of all communication — emails, call dates, and the name of the representative you spoke with.
What happens when you run out of deferrals
After you use your last permitted deferral, you cannot request another one from the same lender on the same loan. If you miss a payment after that point, the lender treats it as a standard late payment. You will be charged a late fee (usually $25 to $50), and the missed payment will be reported to the credit bureaus after 30 days of non-payment.
If you continue to miss payments, the lender may offer a loan modification or forbearance agreement — a formal arrangement that temporarily reduces or pauses your payments. This is different from a deferral and is negotiated case-by-case. It is not automatic, and it requires documentation of hardship. A forbearance agreement typically lasts 3 to 6 months and is reported to credit bureaus as a formal arrangement, which has a larger impact than a deferral.
If you miss three or more payments in a row, the lender may begin repossession proceedings. The exact timeline varies by state and lender, but most will not repossess until you are 90 to 120 days behind. At that point, your only options are to catch up the full amount owed, negotiate a settlement, or surrender the vehicle.
Deferrals on multiple car loans
If you have two car loans with the same lender, each loan has its own deferral limit. Using one deferral on your first car does not reduce the deferrals available on your second car. However, if both loans are with the same lender, the lender may see a pattern of financial stress and be less willing to grant deferrals on future loans or refinances.
If your two loans are with different lenders, the deferrals are completely separate. One lender's deferral limit has no effect on the other. However, if you are deferring payments on multiple vehicles, that is a sign that your income has dropped significantly, and you should consider whether you can afford both vehicles long-term.
Alternatives when deferrals are exhausted
If you have used all your deferrals and another hardship hits, you have other options. A loan modification is a formal change to your loan terms — lower interest rate, extended term, or temporarily reduced payment. It requires a written request and documentation of hardship, and it is reported to credit bureaus. A forbearance agreement temporarily pauses or reduces payments for 3 to 6 months. Both are negotiated directly with your lender and are not may provide.
If you cannot afford the car, you can surrender it voluntarily rather than wait for repossession. Voluntary surrender is reported to credit bureaus but may result in a smaller deficiency (the amount you still owe after the lender sells the car). You can also explore refinancing with a different lender to lower your payment, though this requires decent credit and income verification.
If your hardship is temporary, you might also consider a personal loan or line of credit to cover the car payment while you get back on your feet. This is expensive and should be a last resort, but it keeps the car payment current and avoids credit damage.
Frequently Asked Questions
Can I defer a payment if I am already late?
It depends on your lender's policy and how late you are. Some lenders allow deferrals up to 30 days after the due date; others require the request before the due date. Call your lender when ready and ask. If you are already 60+ days late, a deferral is unlikely, but a forbearance agreement or loan modification may still be possible.
Does a deferral hurt my credit score?
A deferral reported as a neutral note has minimal impact. A deferral reported as a negative mark may lower your score by 10 to 50 points, depending on your credit profile. A missed payment (if you do not request the deferral in time) hurts much more — typically 50 to 100 points. Requesting a deferral before you miss the payment is always better for your credit than missing it and asking later.
What if my lender says I have no deferrals left but I need one?
Ask about a forbearance agreement or loan modification instead. These are separate from deferrals and may be available even after deferrals are exhausted. You will need to document your hardship in writing. If the lender denies all options, your remaining choices are to catch up the payment, refinance with another lender, or surrender the vehicle.
Do deferrals reset if I refinance my car loan?
No. When you refinance, you are paying off the old loan and taking out a new one. The new loan has its own deferral limit based on its own agreement, but deferrals used on the old loan do not carry over. However, the old loan's payment history (including any deferrals) remains on your credit report and may affect whether the new lender approves the refinance.
Can I defer a payment on a lease?
Lease agreements are different from loans and rarely include deferral options. If you are leasing and facing hardship, contact your leasing company when ready to discuss options. Some may offer a temporary payment reduction or forbearance, but it is not standard. If you cannot make lease payments, you may be able to terminate the lease early, though this usually involves a penalty.