Can You Push a Car Payment Back? Everything You Need to Know

The thought of not being able to make your monthly car payment can be very stressful. Life is unpredictable, and even the most careful budgeters have to deal with money problems from time to time. “Can I put off my car payment?” is something a lot of people have thought.

Fortunately, pushing back (also called deferring) a car payment is often possible with the right circumstances. However, it’s not as simple as just skipping a payment without consequences. Deferring a car loan payment is a temporary solution that comes with trade-offs you’ll need to consider carefully.

In this comprehensive guide, we’ll cover everything you need to know about pushing back your car payment including

• What payment deferment is and how it works
• Common eligibility requirements to qualify
• The pros and cons of deferment vs. alternatives
• Step-by-step instructions for requesting deferment
• Strategies to avoid needing deferment in the first place

What Does It Mean to Push Back a Car Payment?

When you put off a car payment, you’re essentially pausing your auto loan. Deferment lets you skip or lower one or more monthly payments for a short time. You’ll still have to pay the money, but you have some time to pay it while you’re having trouble with money.

Here are some key facts about payment deferment:

• Not all lenders offer the option to defer payments. It depends on the lender and your specific loan terms.

• Any skipped or reduced payments will be added to the end of your loan term. For example, if you defer 2 months, your loan will be extended by 2 months.

• Interest still accrues on deferred payments, increasing your total loan cost.

• You may be charged a fee by the lender for each deferred payment, often $10-$50.

• Deferment is meant to help in emergencies but not as a long-term solution. There are usually limits on how many times you can put off payments.

So in essence, deferment buys you temporary breathing room by delaying payments to the future. But you still have to pay the piper eventually.

What Are the Eligibility Requirements for Deferment?

Since deferment increases risk for the lender, there are typically eligibility rules you must meet. Here are some common requirements:

• Current on payments – Most lenders require your loan to be in good standing with no late payments.

• Proof of hardship: You may need to show proof that you are having a hard time financially, such as medical bills, losing your job, etc.

• Limits on frequency – Lenders often limit how often you can defer payments, such as 1-2 times per year.

• Fees – There is usually a deferment fee, ranging from $10 to $50 per deferred payment.

• Creditworthiness – The lender may check your credit score and report to determine eligibility.

The Pros and Cons of Deferring a Car Payment

Before deciding to defer a payment, weigh the potential pros and cons:

Pros

• Buys you time to recover from a financial emergency
• Avoids late fees or defaulting on your loan
• Less damaging to credit than missed payments

Cons

• Late payments still get added to the loan term

• Interest charges continue growing during deferment

• Deferment fees can be expensive

• Can only use occasionally, not an ongoing solution

• Doesn’t address underlying financial issues

As you can see, deferment can be an expensive short-term band-aid. It’s better suited for one-time emergencies, not chronic financial troubles.

Step-By-Step Guide to Deferring Your Payment

If you’ve weighed the pros and cons and decided a deferment is your best option, here is the typical process to request a deferred car payment:

1. Review loan terms – Understand your lender’s specific deferment policy, fees, and eligibility.

2. Contact lender – Call or send a message through your lender’s website to request deferment.

3. Provide documentation – Be prepared to show evidence like medical bills or pay stubs.

4. Get written approval – The lender should provide written confirmation of the deferment terms before proceeding.

5. Sign deferment agreement – You’ll likely need to sign a contract agreeing to the new payment schedule.

6. Resume normal payments – Be sure to restart your regular monthly payments based on the deferment end date.

It’s critical to formally contact your lender and get approved rather than just skipping payments, which would count as delinquency. Open communication and documentation are key to successfully defer payments without penalty.

Alternatives to Deferring Your Car Payment

While useful in emergencies, deferment should be a last resort option. Here are some alternatives to consider first:

• Refinance your loan – You may be able to lower your payments via an auto loan refinance.

• Sell your car – Selling the vehicle and paying off the loan eliminates payments entirely.

• Adjust due date – Ask the lender to align due dates with your pay schedule.

• Voluntary repossession – Surrendering the vehicle may damage credit less than defaulting.

• Debt consolidation loan – Combine debts into one payment that may be more affordable.

Don’t let desperation lead you to defer as an easy way out. Look at the big picture finances and explore all options to address the root causes.

How to Avoid Needing Car Payment Deferment

The best course of action is avoiding deferment in the first place. Here are some tips:

• Build an emergency fund covering 3-6 months of expenses.

• Choose an affordable loan term and payment amount from the start.

• Refinance at a lower rate when possible to reduce payments.

• Pay extra each month to repay the loan faster.

• Manage your budget diligently and trim expenses where feasible.

• Have a backup plan for transportation in case you need to sell.

Responsible borrowing, disciplined budgeting, and proactive planning are the keys to staying out of deferment territory. But if an emergency strikes that you couldn’t prepare for, deferment can serve as a useful last resort.

The Bottom Line

Pushing back your car payment via deferment is certainly possible in many cases, but not guaranteed. Rules and requirements vary between lenders. Deferment should be treated as a temporary fix during unavoidable emergencies rather than an ongoing solution.

If you require payment relief, be upfront with your lender, document the hardship properly, weigh all alternatives, and have a plan to prevent needing deferment again. With diligence and discipline, you can get through a financial storm without derailing your long-term financial goals.