Yes, you can defer a car payment, but only if your lender agrees to it
Deferring a car payment means postponing one or more monthly payments to a later date. Your lender is not required to grant a deferral — it is their choice. Most major auto lenders do offer payment deferrals during hardship, but the terms vary widely. Some will let you skip one payment and add it to the end of your loan. Others will roll skipped payments into future months. A few will extend your loan term instead. The key is that you must contact your lender before the payment is due, not after.
A deferral is different from a forbearance or a loan modification. A forbearance temporarily reduces or pauses payments but does not erase what you owe — interest usually keeps accruing. A modification changes the loan terms permanently, which is harder to get. A deferral is the middle ground: you skip payments now and make them later, usually without extra interest charges if approved in advance.
Key Takeaways
- Contact your lender before your payment is due to request a deferral; calling after you miss a payment makes approval less likely.
- Most lenders allow one to three months of deferred payments, though some cap deferrals at one per loan or one per year.
- Deferred payments are typically added to the end of your loan, extending the payoff date by the number of months you skip.
- Your credit report may show a deferred payment as a late payment if the lender reports it that way, so ask how it will be reported before you agree.
- 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. Have your loan number and account information ready. Tell the representative you are requesting a payment deferral because of a specific hardship — job loss, medical emergency, reduced hours, or temporary income loss. Lenders are more likely to approve deferrals tied to a real event than vague requests.
Ask the representative these questions before you agree to anything: How many payments can you defer? Will the deferred payments be added to the end of the loan or rolled into future monthly payments? Will interest continue to accrue on the deferred amount? How will this be reported to the credit bureaus — as a late payment, a deferral, or not at all? Is there a fee for the deferral? Get the answer in writing, either through email or by requesting a written confirmation in the mail.
If the first representative says no, ask to speak with a supervisor or the hardship department. Some lenders have a dedicated team for payment deferrals and forbearances that can override an initial denial. Be clear about your situation and ask what documentation they need — recent pay stubs, a termination letter, medical bills, or proof of reduced income.
What happens to your credit when you defer a payment
This depends entirely on how your lender reports the deferral to the three credit bureaus: Equifax, Experian, and TransUnion. Some lenders report a deferral as a "deferred payment" or "payment arrangement," which has less impact than a late payment. Others report it as a 30-day late payment, which will lower your credit score. A few do not report it at all if you stay current on all other accounts.
Before you accept a deferral, ask your lender exactly how they will report it. If they say it will show as a late payment, you have the right to decline and explore other options. Write down the representative's name, date, and what they told you. If the deferral later appears on your credit report as a late payment when they said it would not, you can dispute it with the credit bureau and ask the lender to correct the report.
Deferral limits and what happens after
Most lenders cap deferrals at one to three months per loan. Some allow only one deferral per year. A few will not grant a second deferral at all, even if you have a new hardship. Read the terms of your loan agreement or ask your lender about their deferral policy before you request one — you may only get one chance.
After your deferral period ends, your regular monthly payment resumes. If you deferred three months of payments, your loan will now end three months later than originally scheduled. You will not owe a lump sum; the deferred payments are simply tacked onto the back of your loan. If you deferred payments by rolling them into future months, your payment amount may increase temporarily, or the extra amount may be spread across the remaining loan term.
If you cannot afford your regular payment when the deferral ends, contact your lender again before you miss a payment. Explain the situation and ask about forbearance, a loan modification, or refinancing. Waiting until you miss a payment makes it much harder to negotiate and damages your credit further.
When a deferral is not approved
If your lender denies a deferral, ask why. Common reasons include: you are already behind on payments, you have already used your one deferral for the year, your loan is too new or too old, or your hardship does not meet their criteria. If the denial is because you are already late, ask whether you can still get a forbearance or a loan modification.
A forbearance temporarily reduces your payment or pauses it entirely, and the lender may not report it as a late payment if you are current when you request it. A loan modification changes your interest rate, term, or payment amount permanently, which can lower your monthly bill. Both are harder to get than a deferral, but they are worth asking about if a deferral is off the table.
If your lender will not work with you on any option, contact a nonprofit credit counselor through the National Foundation for Credit Counseling (NFCC) or the Financial Counseling Association (FCA). They can sometimes negotiate with lenders on your behalf and may uncover options you did not know existed.
Deferral vs. other payment relief options
| Option | How it works | Credit impact | When to use it |
|---|---|---|---|
| Deferral | Skip one to three payments; add them to the end of the loan. | Varies by lender; may show as late payment or not at all. | You have a temporary hardship and expect to recover soon. |
| Forbearance | Pause or reduce payments for three to six months; interest accrues. | Usually less damaging than a late payment if you stay current. | You need breathing room but cannot skip payments entirely. |
| Loan modification | Change the interest rate, term, or payment amount permanently. | May show as a modification; less damaging than default. | Your hardship is long-term and you need a lower payment forever. |
| Refinancing | Pay off the current loan with a new loan at a different rate and term. | A hard inquiry lowers your score temporarily; new loan helps long-term. | Your credit has improved or rates have dropped since you borrowed. |
What to do if you miss a payment before requesting a deferral
If you have already missed a payment, call your lender immediately. Do not wait for a collection call. Explain your situation and ask about a deferral, forbearance, or modification. Lenders are more willing to work with borrowers who reach out first than those who ignore bills.
A single missed payment will likely damage your credit, but it is not permanent. If you get current within 30 days, the damage is less severe than if you stay late for 60 or 90 days. Once you are current, ask your lender whether they will remove the late payment from your credit report if you stay on time for the next six to twelve months. Some will; many will not. But it is worth asking.
If you are more than 90 days late, your lender may begin repossession proceedings. At that point, a deferral is unlikely, but a loan modification or refinancing might still save the car. Contact a credit counselor or a lawyer who handles auto loans in your state to understand your options.
Frequently Asked Questions
Can I defer a car payment if I am already late?
It is much harder, but not impossible. Call your lender and explain the situation. If you are only a few days late, they may still grant a deferral or forbearance. If you are 30 days or more late, ask about a loan modification instead. The longer you wait, the fewer options you have.
Will deferring a payment hurt my credit score?
It depends on how your lender reports it. If they report it as a deferral or payment arrangement, the damage is minimal. If they report it as a late payment, your score will drop. Ask your lender before you agree to the deferral. Get the answer in writing so you have proof of what they said.
What if I cannot afford my payment after the deferral ends?
Contact your lender before your regular payment is due. Ask about a forbearance, loan modification, or refinancing. Do not wait until you miss a payment. The sooner you reach out, the more options you have.
Can I defer multiple payments in a row?
Most lenders allow one to three deferred payments per deferral request, but they cap how often you can request deferrals — usually once per year or once per loan. Ask your lender about their specific policy before you request a deferral.
What is the difference between a deferral and skipping a payment?
A deferral is approved in advance by your lender and does not count as a missed payment. Skipping a payment without permission is a missed payment that damages your credit and can trigger late fees or repossession. Always ask for a deferral before you skip a payment.