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Can You Defer a Car Payment?

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What is deferment on a car loan, and how feasible is it? If you’ve recently found yourself in a financial emergency, you might be worried about making your next car payment. Missing your payment isn’t an option, so you may be wondering “Can you defer a car payment?” Yes, many lenders will allow their borrowers to defer a car payment to the end of their loan when needed. There are a variety of reasons to defer a car payment. Read on to learn more from the finance team at Sunshine Chevrolet, Llc!

How to Defer a Car Payment

So, what is a deferment on a car loan? Deferments allow borrowers to start making payments on their loans at a later date. A payment deferment on a car loan will help you avoid repossession if you skip a payment. While some auto loans have a built-in deferment policy, you’ll want to speak to your lender for approval as well as learn how often deferment is allowed.

Be prepared to have an honest conversation with your lender about your current financial situation. They’ll want to know why you’re asking to defer your car payment. Bear in mind that, depending on your lender, you may be required to pay interest.

Is Payment Deferment the Right Solution?

Asheville drivers shouldn’t jump straight to deferment. First, see if you have family or a close friend who would be willing to help you out temporarily. Take a look at some advantages and disadvantages of deferring a car payment below:

Advantages

  • Avoid the risk of repossession.
  • Avoid paying hefty late fees.
  • If you’re a Hendersonville driver who still has some equity left in your car, deferring your payment will give you additional time to sell it.
  • Deferring your payment allows you extra time to refinance your loan, which can help mitigate issues with payments in the future.

Disadvantages

  • Your payment is not eliminated but rather sent to the end of your loan, so you’ll still be responsible for making it.
  • Some lenders require that you still pay interest for the month when you defer a payment.
  • Your loan is still accruing interest during your deferment, so you might end up paying more interest over the course of your loan than you would have if you made the payment on time.

Get More Auto Financing Information from Sunshine Chevrolet, Llc

If you have more questions pertaining to car financing, contact the team at Sunshine Chevrolet, Llc in Arden. We can even offer you tips on how to improve your credit score. Stop by our Arden car dealership to learn more today!

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