How Car Mart Payment Plans Work and What to Watch For
What Car Mart is and how their payment system works
Car Mart is a chain of used-car dealerships that finances vehicles directly to buyers, meaning they lend you the money to buy the car and you pay them back over time. Unlike a traditional bank loan, you deal with Car Mart for both the sale and the financing. The company operates in multiple states, primarily in the South and Midwest, and specializes in selling to buyers with limited credit history or past credit problems.
When you buy a car from Car Mart, you make a down payment and then sign a contract agreeing to pay the rest in monthly installments. Car Mart keeps the title to the vehicle until you finish paying—this is called a security interest, and it means they can repossess the car if you stop making payments. Your monthly payment covers the cost of the car plus interest, which is the fee Car Mart charges for lending you the money.
Payments are typically made in one of two ways: you can pay at a Car Mart location in person, or you can set up an automatic bank withdrawal (called an ACH transfer) that pulls money from your checking account on a set day each month. Some locations also accept payments by phone or online, though this varies by store.
Key Takeaways
- Car Mart finances the car sale directly, so you owe money to Car Mart itself, not to a bank or credit union.
- Your interest rate and monthly payment depend on the car's price, your down payment, the loan term, and your credit history.
- Missing even one payment can trigger repossession, and late fees add to what you owe.
- You can pay in person at a Car Mart location, set up automatic bank withdrawals, or use other payment methods depending on your local store.
- If you fall behind, contact Car Mart immediately—many locations work with customers on payment plans rather than repossessing right away.
Understanding your interest rate and monthly payment
Car Mart charges interest on the loan, and the rate you receive depends on several factors: the price of the vehicle, how much you put down, how long you take to pay back the loan, and your credit history. Buyers with lower credit scores or shorter payment histories typically pay higher interest rates than those with strong credit. The company does not publish a standard rate—each deal is individual.
Your monthly payment is calculated to cover both the car's cost and the interest over the life of the loan. If you pay early or pay extra toward the principal (the original amount borrowed), you reduce the total interest you pay and shorten the loan. However, some contracts include a prepayment penalty, which is a fee charged if you pay off the loan early. Always ask whether your contract has one before signing.
The longer your loan term (for example, 60 months instead of 48 months), the lower your monthly payment will be, but you will pay more interest overall. Car Mart typically offers loan terms ranging from 24 to 72 months, though the exact options depend on the vehicle and your situation.
How to make your Car Mart payment on time
Your payment is due on the same day each month, as stated in your contract. Missing the due date triggers late fees and can damage your credit score. To avoid this, set a reminder on your phone or calendar a few days before the due date.
If you pay in person, visit your local Car Mart location during business hours and bring cash, a debit card, or a check. Ask for a receipt showing the payment was received and the remaining balance on your loan. If you set up automatic payments, verify the amount and date with Car Mart before the first withdrawal, and check your bank statement each month to confirm the payment went through.
If you are paid weekly or biweekly and your Car Mart payment is due on a date that does not align with your paycheck, ask Car Mart whether they can adjust the due date. Some locations will work with you to move it to a day that fits your income schedule. This conversation is worth having before you miss a payment.
What happens if you miss a payment or pay late
A late payment occurs when you do not pay by the due date shown in your contract. Car Mart typically charges a late fee—the amount varies but is usually between $10 and $25 per late payment. The late fee is added to what you owe, so your next payment will be higher unless you pay the fee separately.
More importantly, a late payment is reported to credit bureaus and damages your credit score. This makes it harder and more expensive to borrow money in the future, whether for another car, a home, or a credit card. Even one late payment can lower your score by 50 to 100 points.
If you miss a payment entirely or fall more than 30 days behind, Car Mart may begin the repossession process. This means they send someone to take the car back. Once repossessed, the car is sold at auction, and you still owe the difference between what it sells for and what you owe on the loan—this is called a deficiency. You may also be responsible for repossession and auction fees, which can add hundreds of dollars to your debt.
What to do if you cannot make a payment
If you know you will miss a payment, contact Car Mart immediately. Do not wait until after the due date. Explain your situation honestly—whether you lost income, had an unexpected expense, or are facing a temporary hardship. Many Car Mart locations will work with customers rather than repossess, especially if you have been paying on time up to that point.
Possible options include a payment deferment, where Car Mart allows you to skip one or more payments and adds them to the end of your loan, or a loan modification, where they restructure the payment amount or term. Some locations may also accept a partial payment to show good faith while you work toward catching up.
If you cannot catch up and the car is repossessed, you still have options. You may be able to redeem the vehicle by paying the full amount owed plus repossession fees before the car is sold. The time window for redemption is limited—usually 10 to 30 days depending on your state—so act quickly if this is your choice.
Paying off your Car Mart loan early
If you receive a bonus, inheritance, or tax refund, you may want to pay off your Car Mart loan ahead of schedule. This saves you money on interest and frees you from the monthly payment. Before you do, confirm with Car Mart whether your contract includes a prepayment penalty. If it does, calculate whether the penalty cost is less than the interest you would pay by keeping the loan open—sometimes it is, sometimes it is not.
To pay off the loan, contact Car Mart and ask for the payoff amount—this is the exact total you need to pay to close the account, including any remaining principal and interest. Make sure you get this in writing. Once you pay the full amount, Car Mart will release the title to you, and the car is officially yours.
Your rights as a Car Mart customer
Car Mart must follow state and federal lending laws, even though they are a private company. You have the right to receive a copy of your contract before you sign it and to keep a copy for your records. The contract must clearly state the purchase price, down payment, interest rate, monthly payment amount, loan term, and due date.
You also have the right to dispute errors on your account. If Car Mart reports a payment as late when you paid on time, or if they charge a fee you do not believe you owe, you can request an explanation in writing. Keep copies of all receipts and payment confirmations to back up your claim.
If Car Mart repossesses your car, they must follow your state's repossession laws. In most states, they must provide notice before repossessing and must give you a chance to catch up on payments. After repossession, they must account for the sale price and any fees, and they cannot keep extra money—if the car sells for more than you owe, you are may have access to to the difference.
Frequently Asked Questions
Can I change my payment due date?
Many Car Mart locations will adjust your due date to match your pay schedule, but this is not may provide. Call your local store and ask whether they can move your due date. If they agree, get the new date in writing and confirm it appears on your next statement.
What if I want to return the car?
Car Mart does not have a standard return policy like a retail store. Once you sign the contract and drive off the lot, the car is yours and you are responsible for the loan. If you want out of the deal, your only option is to pay off the loan in full or sell the car privately and use the proceeds to pay Car Mart.
Does Car Mart report payments to credit bureaus?
Yes, Car Mart reports your payment history to credit bureaus. On-time payments build your credit score, while late or missed payments damage it. This is one reason making payments on time matters—it affects your ability to borrow in the future.
What happens if the car breaks down and I still owe money?
You are still responsible for the loan payment even if the car needs repairs or stops running. Car Mart does not forgive the loan because of mechanical problems. If the car is not worth fixing, you can sell it for parts or scrap and use the money toward your loan balance, but you remain liable for any amount still owed.
Can Car Mart garnish my wages if I do not pay?
Car Mart can pursue legal action to collect a debt, which may include wage garnishment in some states. However, they typically repossess the car first, which is faster and does not require a court order. If you fall far behind and the car cannot be repossessed, they may sue you. The outcome depends on your state's laws and whether Car Mart chooses to pursue it.