You can skip one or two payments per year on most auto loans, but only if your lender offers a skip program and you meet their terms
A payment skip (also called a deferral) lets you postpone one monthly car payment without penalty, but it is not a right—it is a feature your lender may or may not offer. Most major auto lenders allow you to skip one or two payments in a 12-month period, but the rules vary widely. Some lenders cap you at one skip per year. Others allow two. A few allow none at all.
The catch: skipping a payment does not erase it. Your lender adds the skipped amount to the end of your loan, extending your payoff date and increasing the total interest you pay. If you skip a $400 payment, you will owe that $400 plus interest on it later. You must also meet your lender's conditions—usually that you are current on all other payments and have not skipped recently.
If you skip without permission, your payment is simply late. That triggers a late fee (typically $25 to $50), reports to your credit bureau after 30 days, and puts you at risk of repossession if you fall further behind.
Key Takeaways
- Most lenders allow one or two skips per year, but you must request the skip before the payment is due and your account must be current.
- Skipping a payment adds that amount to the end of your loan, so you pay more interest and owe the car longer.
- Skipping without permission is a late payment that damages your credit and can trigger repossession after 60 to 90 days of non-payment.
- Your lender's skip program rules are in your loan contract or on their website; calling to ask before you need it prevents confusion later.
- If your lender does not offer skips, forbearance or loan modification may be your only options to pause payments temporarily.
How to request a skip before your payment is due
Contact your lender at least 10 days before your payment due date. Call the customer service number on your loan statement or bill, or log into your online account if your lender offers skip requests there. Tell them you want to skip your next payment and ask whether you are may be able to access.
Your lender will check three things: whether your account is current (no missed or late payments), whether you have already used your skip allotment this year, and whether your loan contract allows skips. If you pass all three, they will confirm the skip in writing—usually by email or through your online account. Do not assume the skip is approved until you have written confirmation.
Some lenders require you to skip through their website or app rather than over the phone. A few require a written request. Check your loan documents or ask during your call which method your lender uses. Once approved, your payment due date will shift forward by one month.
What happens to your loan when you skip
Your lender adds the skipped payment amount to your loan balance. If your monthly payment is $350 and you skip once, your loan balance increases by $350 plus any interest that accrues during the skip period. Your loan term extends by one month for each skip.
Example: You have 48 months left on your loan. You skip one $350 payment. You now have 49 months left, and you owe an extra $350 plus interest. If you skip a second time later that year, you have 50 months left and owe an additional $350 plus interest.
The total cost to you is real. Over the life of the loan, skipping two payments can add $50 to $150 in extra interest, depending on your interest rate and how much time is left on the loan. Skipping is a tool for temporary cash flow problems, not a way to reduce what you owe.
Lenders that offer skip programs and their limits
| Lender | Skips per year | How to request |
|---|---|---|
| Capital One Auto Finance | Up to 2 | Online account or phone |
| Chase Auto Finance | Up to 2 | Phone or online |
| Wells Fargo Auto | Up to 2 | Phone or online |
| Ally Bank | Up to 2 | Online account |
| Santander Consumer USA | Up to 2 | Phone |
| Credit unions (varies) | Typically 1 to 2 | Phone or in person |
Not all lenders offer skip programs. Smaller lenders, buy-here-pay-here dealers, and some credit unions do not. If your lender is not listed above, check your loan contract under "payment deferral" or "skip payment," or call customer service to ask directly.
The limits above are current but subject to change. Your specific loan may have different rules based on when you took it out, your credit history, or your account status. Always confirm with your lender before counting on a skip.
What happens if you miss a payment without requesting a skip
A missed payment without a skip request is reported as late to the three credit bureaus (Equifax, Experian, TransUnion) after 30 days. Your credit score drops immediately—typically by 50 to 100 points for a first late payment. The damage worsens if you stay late for 60 or 90 days.
Your lender will also charge a late fee, usually $25 to $50, and may charge you a higher interest rate on future payments if your loan allows it. After 60 days of non-payment, your lender can begin repossession proceedings. Most lenders wait 90 to 120 days before actually repossessing, but they can legally do it sooner.
Once your car is repossessed, you still owe the remaining loan balance even after the lender sells the car at auction. You may also owe the cost of repossession, storage, and auction fees. The repossession stays on your credit report for seven years.
Alternatives if your lender does not offer skips
Forbearance is a temporary pause on payments, usually for 3 to 6 months, offered by some lenders during hardship. Unlike a skip, forbearance does not require you to make a payment at all during the forbearance period, though interest still accrues and the missed payments are added to the end of your loan. You must contact your lender and explain your hardship (job loss, medical emergency, natural disaster). Forbearance is discretionary—your lender can refuse.
Loan modification is a permanent change to your loan terms. Your lender may lower your interest rate, extend your loan term to reduce the monthly payment, or capitalize (add to the balance) any missed payments. Modification requires negotiation and is not may provide. It is most likely if you have been a reliable customer and your hardship is temporary.
Refinancing means taking out a new loan to pay off the old one. If your credit score has improved or interest rates have dropped, you may may have access to for a lower rate and a lower monthly payment. Refinancing takes time (usually 5 to 10 business days) and requires a new application, so it does not help if you need immediate relief.
How skips affect your credit and insurance
A skip does not appear on your credit report as a late payment because it is an approved deferral, not a missed payment. Your credit score is not harmed by using a skip program. However, your credit report will show that your loan term has been extended, which some lenders may note when you apply for new credit.
Your auto insurance is not affected by a skip. Insurance companies do not monitor your loan payment status. However, if you fall behind and your car is repossessed, you should cancel your insurance immediately to avoid paying premiums on a car you no longer own.
Frequently Asked Questions
Can I skip a payment if I am already one month behind?
No. Your account must be current (no missed payments) to use a skip program. If you are already late, contact your lender immediately to discuss forbearance or a payment plan instead. Skipping will not help you catch up.
What if I skip a payment and then lose my job the next month?
Call your lender right away and explain the hardship. You may be able to request forbearance for the following months, or your lender may modify your loan. Do not skip a second payment without approval—that becomes a missed payment and damages your credit.
Does skipping a payment mean I owe less money overall?
No. Skipping adds the payment amount plus interest to your loan balance, so you owe more, not less. You pay interest on the skipped amount for the remaining life of the loan. Skipping is for cash flow relief, not debt reduction.
Can I skip two payments in a row, or do they have to be months apart?
Most lenders require skips to be spread throughout the year. You typically cannot skip two months in a row. Check your loan contract or ask your lender about their spacing rules before you request a second skip.
What if my lender says I cannot skip because of my credit score?
Some lenders restrict skips to customers with good payment history or higher credit scores. If you are denied, ask whether forbearance or a payment plan is available instead. You may also shop for a refinance with a different lender if your situation improves.