Santander will defer a car payment, but only if you contact them before the payment is due and meet their hardship criteria
Santander Consumer USA, which services millions of auto loans, has a formal deferral program for borrowers facing temporary financial hardship. A deferral postpones one or more monthly payments to the end of your loan — you do not pay now, but you will pay later. Santander does not automatically grant deferrals; you must call and request one, and the company will review your situation to decide whether to approve it.
The key difference between a deferral and skipping a payment is that skipping means you straightforward do not pay and face late fees and credit damage. A deferral is an agreement with Santander that temporarily suspends your obligation. If approved, you avoid the penalties that come with a missed payment.
Key Takeaways
- Santander requires you to call their hardship department before your payment due date to request a deferral; waiting until after the payment is late makes approval less likely.
- You must explain a specific hardship — job loss, medical emergency, reduced income — rather than general financial strain.
- Santander typically defers one to three payments, adding them to the end of your loan term and extending your payoff date.
- A deferral does not erase the payments; it reschedules them, so your total loan cost and interest remain the same or increase slightly.
- If Santander denies your deferral request, you can ask about loan modification or a temporary payment reduction as an alternative.
How to request a deferral from Santander
Call Santander's customer service line at 1-855-280-6033 and ask to speak with the hardship or loss mitigation department. Have your loan number and account information ready. Explain the hardship you are facing — a job loss, unexpected medical bill, temporary income reduction, or similar event — and ask whether a payment deferral is available to you.
Santander will ask how many payments you want to defer (usually one to three) and when you expect to resume regular payments. They may also ask for documentation of the hardship, such as a termination letter from your employer or a medical bill. The company typically makes a decision within a few business days.
Timing matters. Calling before your payment is due gives Santander time to process your request and set up the deferral before a late payment appears on your credit report. If you call after the due date, the company may still work with you, but the late payment may already be recorded.
What happens to your payments when Santander approves a deferral
The deferred payments move to the end of your loan. If you normally pay $400 a month and defer two payments, those two $400 payments are added to your final payment or spread across the last months of the loan. Your loan term extends by the number of months you defer.
Interest continues to accrue on the deferred amount. You are not avoiding interest; you are postponing it. If you defer a $400 payment for three months, you will owe that $400 plus the interest that accrues during those three months when the deferral period ends.
The deferral itself does not appear as a negative mark on your credit report if Santander approves it before the payment is late. However, if a payment was already reported as late before you received approval, that late mark may remain on your report for seven years.
Santander's hardship criteria and limits
Santander does not defer payments for everyone. The company looks for a specific, temporary hardship — not a permanent inability to pay. Job loss, medical emergency, divorce, or a sudden reduction in household income are the kinds of situations Santander considers. General financial strain or poor budgeting is less likely to result in approval.
Most deferrals are limited to one to three payments. Santander will not typically defer six months of payments or more, because at that point the company considers the loan unmanageable and may suggest other options instead.
You can usually request a deferral once per loan. If you have already deferred payments on this loan, Santander may deny a second deferral request or offer a different solution, such as a loan modification that lowers your monthly payment permanently.
What to do if Santander denies your deferral request
If Santander says no to a deferral, ask whether a loan modification is available. This is different from a deferral: instead of postponing payments, a modification restructures the loan itself — extending the term, lowering the interest rate, or reducing the monthly payment. A modification is permanent, whereas a deferral is temporary.
You can also ask about a temporary payment reduction. Some lenders will lower your monthly payment for a set period (usually three to six months) while you recover from hardship, then return to the regular payment amount. This is less common than a deferral, but worth asking about if deferral is not an option.
If Santander offers neither, you have the option to refinance the loan with a different lender if your credit allows it. Refinancing replaces the Santander loan with a new one from another bank, potentially with a lower rate or longer term that reduces your monthly payment.
The difference between a Santander deferral and forbearance
Santander uses the term "deferral" for what some other lenders call forbearance. Both mean the same thing: postponing payments temporarily. Santander's formal program is called a deferral, so use that word when you call. The outcome is the same — your payments are rescheduled to the end of the loan.
Do not confuse a deferral with a pause or freeze. A pause would mean you stop paying and the loan straightforward waits; a deferral means you stop paying now and pay later. The payments still happen; they just move to a different time.
How a deferral affects your loan timeline and total cost
If you defer two $400 payments, your loan extends by two months. If you were scheduled to pay off the loan in 48 months, you now pay it off in 50 months. This means you pay interest for two additional months, which increases your total interest cost slightly.
The exact increase depends on your interest rate and the amount deferred. A $400 deferral at 6% interest costs roughly $12 more in interest over the life of the loan. At 12% interest, it costs roughly $24 more. Santander will tell you the exact new payoff date and total cost when they approve the deferral.
A deferral is not forgiveness. You are not losing money or getting a break on interest. You are moving payments forward in time, which costs you a small amount in additional interest but buys you breathing room now.
Frequently Asked Questions
Can I defer a payment if I am already late?
Yes, but it is harder. If your payment is already 10 or more days late, Santander may still approve a deferral, but the late payment will likely remain on your credit report. Call when ready and explain your situation. The sooner you contact Santander after missing a payment, the better your chances of approval.
Will a deferral hurt my credit score?
A deferral itself does not hurt your credit if you request it before the payment is late. However, if a payment was already reported as late before you received approval, that late mark will stay on your credit report for seven years and will lower your score. This is why calling before the due date matters.
What happens if I cannot resume payments after the deferral ends?
Contact Santander again before the deferred payments come due. Explain that you still need help. Santander may offer a loan modification, a second deferral (though this is less common), or discuss other options. Do not straightforward stop paying; that will trigger late fees and credit damage.
Can I defer a payment if I am behind on other bills?
Being behind on other debts does not automatically disqualify you from a Santander deferral. Santander cares about your ability to pay the car loan, not your other obligations. However, if you are behind on multiple debts, Santander may view you as higher risk and deny the request. Be honest about your overall situation when you call.
How long does it take Santander to approve a deferral?
Santander typically makes a decision within two to five business days of your call. If you need the deferral to take effect before your next payment is due, call as soon as possible. If you call the day before your payment is due, Santander may not have time to process it, and the payment may still be reported as late.