Can You Defer a Car Payment?

If you find yourself in a tough time financially, can you defer a car payment? The answer is yes, many New London drivers defer payments for this exact reason. But, the process has its set of pros and cons. Does a deferment hurt your credit? How many times can you defer a car payment? Westbrook Honda goes through the answers to these commonly asked questions, so you can take control of your finances with confidence.

What is a Car Payment Deferment?

Before we dive into questions like “How many times can you defer a car payment?”, let’s discuss what a car deferment entails. When you request a car deferment from your lender, you’re asking for permission to delay a monthly payment. Here are a few things to consider:

• Different lenders require different things. Some have built-in deferment policies, while others may not.
• How many times can you defer a car payment? Some lenders only allow one, while some will approve multiple deferments.
• Does a deferment hurt your credit score? No. While it won’t help, it won’t hurt it either.

What are the Pros and Cons of Deferment?

Pros

• Deferment allows you to skip a payment without consequences. No repossession anxieties, no damage to your credit score, no late charges.
• If you want to sell your car in New London, deferment gives you extra time to sell while it still has remaining equity.
• If your car payments are too high, you can defer before refinancing for a better rate.

Cons

• Even if you defer a payment in Middletown, you’ll still need to pay it eventually
• You might need to pay interest for the payment, even if you aren’t covering the payment itself.
• You still accrue interest during the deferral period. This means you might pay more interest over time.

Get Expert Financial Advice at Westbrook Honda

We’ve covered questions like “Does a deferment hurt your credit?”, but if you need more information, just contact us! Our team would be happy to help you find the best path forward, so reach out at any time or drop by our finance center in Westbrook for personalized advice.