How to Pause or Delay Your Car Payment
What deferment means and how it works
Deferment means your lender agrees to let you skip one or more monthly car payments and add those payments to the end of your loan instead of forgiving them. You still owe the money—you are just paying it later. The lender does not erase the debt; they restructure when you pay it.
When you defer a payment, that month's amount gets tacked onto your final payment or spread across the remaining months of your loan. Some lenders call this a payment deferment; others call it a loan modification or forbearance. The mechanics are the same: you stop paying now, and you pay more later.
Deferment is different from forgiveness. Your lender is not erasing the debt or reducing what you owe. They are moving the due date. This matters because you will still be making car payments after the deferment period ends—often for longer than your original loan term.
Key Takeaways
- Deferment pauses your payment but adds it to what you owe later; the debt does not disappear.
- Most lenders allow one to three months of deferment per year, though the rules vary by lender and loan type.
- You must contact your lender directly to request deferment, usually by phone or through your online account portal.
- Interest continues to accrue during deferment, so you will pay more total interest over the life of the loan.
- Deferment does not hurt your credit score as long as you complete the deferment agreement and resume payments on time.
When you can request deferment from your lender
Most lenders allow deferment if you are experiencing a temporary financial hardship—a job loss, medical emergency, or unexpected expense that makes this month's payment impossible but does not mean you cannot pay later. You do not have to be behind on payments to ask. In fact, calling before you miss a payment is the best time to request it.
The lender's decision depends on your loan agreement and their internal policy. Some lenders allow one deferment per year; others allow up to three months spread across twelve months. A few lenders have no formal deferment program and will only negotiate on a case-by-case basis. Your loan documents or the lender's website should state their policy, but the fastest way to know is to call and ask.
Timing matters. If you know a payment will be hard to make, contact your lender before the due date. If you are already late, the lender may still work with you, but they have more leverage and fewer reasons to be flexible. Late payments also damage your credit score immediately, whereas deferment—if approved before you miss the payment—does not.
How to request deferment from your lender
Start by calling the customer service number on your loan statement or the lender's website. Tell them you are requesting a payment deferment and explain your situation briefly: "I had a job loss and need to defer my payment for one month." You do not need to provide extensive documentation at this stage, though the lender may ask questions to assess your situation.
If the lender approves your request, they will send you a written agreement or modification letter that spells out which payment or payments are being deferred, when they will be added back, and what your new payment schedule looks like. Read this document carefully and ask the lender to clarify anything you do not understand before you sign. Some agreements add the deferred amount to your final payment; others spread it across the remaining months.
Keep a copy of the signed agreement. If you have an online account with your lender, the deferment should appear there as well. Before your deferment period ends, log in or call to confirm your new payment schedule so you know exactly when and how much you owe.
What happens to interest and your loan term during deferment
Interest does not stop accruing during deferment. Your lender is still charging you interest on the outstanding balance, even though you are not making a payment. This means the total amount of interest you pay over the life of the loan will be higher than it would have been without deferment.
Your loan term may also extend. If you defer a payment and it gets added to the end of your loan, you will be making car payments for longer than you originally planned. For example, if your loan was set to end in 36 months and you defer one payment, you might now be paying until month 37. This extension compounds the interest cost.
Some lenders offer interest-free deferment, meaning interest does not accrue during the deferment period. This is rare and usually only available to borrowers with strong credit or to those in specific hardship situations. Always ask your lender whether interest will accrue during your deferment period before you agree to it.
How deferment affects your credit score
Deferment itself does not damage your credit score if you complete the agreement as written and resume payments on time. The three major credit bureaus—Equifax, Experian, and TransUnion—do not penalize you for using a lender-approved deferment program. Your payment history remains clean as long as you stick to the new schedule.
However, if you miss a payment before requesting deferment, that missed payment will show on your credit report and lower your score. This is why calling your lender before you miss a payment is so important. A late payment can stay on your credit report for up to seven years, whereas an approved deferment leaves no mark.
If you fail to resume payments after the deferment period ends, or if you miss a payment during the deferment period, your credit score will be affected. Treat the deferment agreement like any other loan obligation: mark the new payment dates on your calendar and make sure the money is there when it is due.
Alternatives to deferment if your lender will not approve it
If your lender denies your deferment request, you have other options. A loan modification is similar to deferment but may involve changing your interest rate or extending your loan term permanently rather than just moving payments around. Some lenders are more willing to modify a loan than to defer a payment.
You can also ask about a payment reduction for one or two months. Instead of skipping the payment entirely, you pay a smaller amount now and make up the difference later. This is less disruptive to your loan schedule and some lenders find it more acceptable than full deferment.
If you are facing a longer-term financial crisis, you may need to explore refinancing your car loan with a different lender, selling the car, or consulting a credit counselor. A nonprofit credit counselor can review your full financial picture and help you understand whether deferment, modification, or another option makes sense for your situation. The National Foundation for Credit Counseling (NFCC) offers free or low-cost counseling.
What to do if you cannot resume payments after deferment ends
If the deferment period is ending and you still cannot afford the new payment amount, contact your lender immediately. Do not wait until you miss a payment. Explain your situation and ask whether you can request another deferment, a loan modification, or a different arrangement.
Some lenders will work with you if you reach out proactively. Others may refuse a second deferment but might agree to a modification or a temporary payment reduction. The key is to communicate before you default, because once you miss a payment, your lender has less incentive to negotiate and more reason to pursue collection or repossession.
If your financial hardship is severe and ongoing, you may need to consider whether keeping the car is realistic. Selling the car and paying off the loan, or voluntarily surrendering it to the lender, may be less damaging to your credit than a series of missed payments or a repossession. A credit counselor can help you weigh these options.
Frequently Asked Questions
Will deferment show up on my credit report?
No. A lender-approved deferment does not appear on your credit report or affect your credit score. Only missed or late payments show up. As long as you complete the deferment agreement and resume payments on time, your credit history remains clean.
Can I defer my car payment if I am already late?
Yes, but it is harder. If you are already late, the lender may still negotiate, but they have less reason to be flexible. If you can pay the late amount and then request deferment for the next payment, that is a stronger position. Always ask the lender what they need from you before you agree to anything.
How many times can I defer a payment?
Most lenders allow one to three deferments per year, depending on their policy and your loan agreement. Some lenders have no limit but will only approve deferment if you show genuine hardship each time. Call your lender to find out their specific rules.
Does deferment mean I do not have to pay the money back?
No. Deferment moves the payment to later in your loan, but you still owe it. The deferred amount gets added to your final payment or spread across your remaining payments, so you will pay it eventually—plus interest.
What if my lender will not let me defer?
Ask about a loan modification, a temporary payment reduction, or refinancing with a different lender. If you are in genuine hardship, a nonprofit credit counselor can help you explore all your options and negotiate with your lender on your behalf.