You can skip a car payment, but only if your lender agrees to it first
Skipping a car payment without permission will damage your credit and may trigger repossession. If you contact your lender before the payment is due and ask about a payment deferral or forbearance, they may agree to push that month's payment to the end of your loan or spread it across future payments. This is not automatic—lenders are not required to offer it—but most will work with you if you ask early and have a legitimate reason for the hardship.
The key word is before. Once a payment is late, your options narrow and the damage to your credit report begins immediately. A single missed payment stays on your credit report for seven years and can lower your score by 100 points or more.
Key Takeaways
- Contact your lender as soon as you know you cannot make a payment—do not wait until the due date passes.
- A payment deferral or forbearance agreement must be in writing and should specify whether the skipped payment is added to the end of the loan or spread across future months.
- Skipping a payment without lender permission triggers late fees, credit damage, and puts you at risk of repossession after one or two missed payments.
- Some lenders offer hardship programs that may include payment reductions or temporary skips, but you have to ask and meet their criteria.
How lenders handle payment deferrals
When you call your lender and ask to defer a payment, they will ask why—job loss, medical emergency, temporary income drop. They will also pull your payment history. If you have been on time for months or years, they are more likely to say yes. If you are already behind, they will usually refuse and instead push you toward a loan modification or refinance.
If they agree, they will send you a written deferral agreement. Read it carefully. It should say exactly what happens to the skipped payment: does it get added to your final payment, spread across the remaining months, or tacked onto the end of the loan? Some agreements allow only one deferral per loan; others allow two or three. The agreement should also confirm that the deferral does not count as a late payment on your credit report—this is important and worth asking about explicitly.
Without a written agreement, you have no protection. A verbal promise from a phone representative means nothing if a different department reports the missed payment as late.
What happens if you skip a payment without permission
A missed car payment is reported to the credit bureaus 30 days after the due date. Your credit score drops immediately. Late fees—usually $25 to $50—are added to your balance. Your lender may also charge interest on the late amount.
After 60 days, your lender may send a formal notice. After 90 days, they can begin repossession proceedings. Most lenders will repossess after three missed payments, though some move faster. Repossession can happen without warning—a tow truck can take your car from your driveway, street, or workplace. You will then owe the full remaining loan balance plus repossession and storage fees, which can total $1,000 to $3,000.
Even if you catch up later, the late payments stay on your credit report for seven years. This affects your ability to get a mortgage, refinance, or get a credit card at a reasonable rate.
Hardship programs and other options
Many lenders have formal hardship programs for customers facing temporary financial strain. These programs may include a temporary payment reduction, a few months of deferred payments, or a loan modification that extends the term and lowers the monthly payment. You have to ask—lenders do not advertise these widely.
To learn about your lender offers a hardship program, call the customer service number on your loan statement and ask directly: "Do you have a hardship program for customers facing financial difficulty?" Be specific about your situation. Have your account number and loan balance ready.
If your lender refuses or you need more time, you can also explore refinancing with a different lender, though this is harder if your credit is already damaged. A credit union may offer better terms than a traditional bank if you are a member.
The difference between deferral, forbearance, and modification
These terms are often used interchangeably, but they work differently. A deferral pushes one or two payments to the end of the loan or spreads them across future months—the payment is not forgiven, just delayed. A forbearance is similar but usually lasts longer (three to six months) and is more common in mortgage lending than auto lending. A loan modification permanently changes the terms: the lender extends the loan term, lowers the interest rate, or reduces the monthly payment.
For a car loan, a deferral is the easiest to get if you have been paying on time. A modification is harder to get but more helpful if you cannot afford the current payment long-term. Ask your lender which options are available to you.
How to ask your lender for a payment skip
Call your lender's customer service line during business hours. Do not email or use an app—speak to a person. Explain your situation clearly: "I have a temporary hardship and cannot make my payment this month. Can we defer this payment or work out a plan?" Have your account number, current balance, and payment due date ready.
If the first representative says no, ask to speak to a supervisor or the loss mitigation department. Different departments have different authority. If you are still refused, ask what options exist—sometimes a lender will agree to a partial payment or a few extra days without penalty.
Once you reach an agreement, ask for the deferral agreement in writing. Get a confirmation number and the name of the representative you spoke with. Do not rely on a verbal promise.
What to do if you have already missed a payment
If your payment is already late, call your lender immediately. Explain the situation and ask if they will work with you. Some lenders will reverse late fees if you bring the account current within 30 days. Others will not, but they may still offer a deferral or modification if you act quickly.
If your lender has already begun repossession proceedings, you may still have options. Some states allow you to reinstate the loan by paying all back payments, late fees, and repossession costs in full. Other states allow a redemption period where you can reclaim the car after repossession by paying the full loan balance. These windows are short—sometimes only 10 days—so act fast if you want to save the car.
If repossession happens and you cannot redeem the car, the lender will sell it at auction. If the sale price is less than what you owe, you are responsible for the difference (called a deficiency). The lender can sue you for this amount.
Frequently Asked Questions
Will skipping one payment hurt my credit if the lender agrees?
Not if the deferral agreement states that the skipped payment will not be reported as late. Make sure this is in writing. If the lender reports it as late anyway, you can dispute it with the credit bureaus and ask the lender to correct the report.
Can I skip a payment if I am behind on other bills?
Lenders are more cautious if you are already behind on other accounts, but it is still worth asking. Be honest about your situation. Some lenders will defer a payment if you can show that this one deferral will help you catch up on everything else.
What if my lender will not agree to defer a payment?
Ask if they offer a partial payment option or a few extra days without penalty. If they refuse everything, explore refinancing with another lender or a credit union. If you are facing long-term hardship, a loan modification may be your only option.
Does a payment deferral extend my loan?
Usually yes. If your loan was set to end in 24 months and you defer one payment, it now ends in 25 months. The deferral agreement should specify this. Some lenders spread the deferred payment across remaining months instead, which does not extend the loan but increases each payment slightly.
Can I skip a payment on a lease?
No. Lease agreements are stricter than loan agreements, and skipping a payment is grounds for early termination. Contact your lessor immediately if you cannot make a payment—they may offer a temporary reduction or modification, but deferral is rare.