Can You Defer Car Payments?
Financial emergencies sometimes happen. When they do and you need extra cash in Cape Coral, you might be wondering, can you defer a car payment? Many lenders will allow you to get a payment deferment on a car loan. Missing a payment isn’t an option, but you can get some answers to “what is a deferment on a car loan?” from the finance department at Val Ward Cadillac. They’re here to help you decide what’s best for your vehicle finances.
What Is a Deferment on a Car Loan?
Wonder what a deferment on a car loan is? It’s a process that lets a borrower start making their payments at a future date. A payment deferment on a car loan can help you avoid repossession if you need to skip a payment. Check the fine print on your auto loan—you might have a payment deferment built into your loan agreement.
Even so, you can’t get a deferment unless you receive approval from your lender. If you know you won’t make your next car payment, contact your lender as soon as possible. No matter the reason, be prepared for an honest conversation about your financial situation. Your lender will want details about why you’re requesting a payment deferment.
How Often Can You Get a Payment Deferment on a Car Loan?
How often you can defer a car payment in Naples depends on your lender and the terms of your loan. This information should be outlined in your auto loan paperwork, or you can confirm it directly with your lender.
Reasons to Defer a Car Payment
Of course, Bonita Springs drivers considering a payment deferment on a car loan should carefully weigh the pros and cons. Missing a payment isn’t an option due to its long-term consequences, and a deferment should only be used when all other options have been exhausted.
Here are some potential benefits that may help you decide if a payment deferment is the right choice for your situation:
- Avoid the risk of repossession, which can leave you without a vehicle and significantly damage your credit score.
- Avoid paying costly late fees.
- If you have equity in your car, a deferment can give you time to sell it.
- Gain additional time to refinance your auto loan, which may help prevent future payment challenges.
Get More Auto Financing Information from Val Ward Cadillac
Whether you’re wondering if you can get a deferment on a car payment or you’re ready to apply for financing on a new vehicle, the finance department at Val Ward Cadillac is here to help. Contact us anytime with your questions.
