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Can You Defer a Car Payment?

2021 Mercedes-Benz GLA exterior in red

If you find yourself facing financial challenges, you may be wondering, “Can you defer a car payment?” Yes, many lenders allow their borrowers to defer a car payment to the end of their loan when necessary. There numerous reasons to defer a car payment. Anyone can find themself in a financial emergency. One that requires them to reallocate funds, leaving too little money in the bank. Learn more from the team at the Mercedes-Benz of North Olmsted finance center about how to defer a car payment in North Olmsted.

What is a Deferment on a Car Loan?

Let’s answer the question, “What is a deferment on a car loan?” Payment deferment on a car loan allows a borrower to make payments on their loan in the future, rather than at that moment. If you need to skip a payment, a payment deferment on a car loan will help you avoid repossession. Sometimes, your auto loan will even have a built-in deferment policy. Regardless, you can’t defer a car payment without the approval of your lender.

If you know that you won’t make your next car payment, call your lender to let them know as soon as you can. There are many reasons to defer a car payment, but you need to have an honest conversation with them about your current financial situation. It’s best for them to know the details as to why you need to defer your car payment in the first place. Don’t forget to keep in mind either that, depending on your lender, you may still be required to pay interest when you defer a payment.

How Many Times Can You Defer a Car Payment?

Each lender will have a different policy for deferment, so the exact number of times you can defer a car payment will vary. It may be that your lender only allows one deferment, others could allow two or even more. The timespan this number applies to can also vary by lender; from a yearly basis, to your entire loan term.

What are Good Reasons for Deferring a Car Payment?

Before you move ahead with deferring a car payment, ask yourself, “Is this the best solution for my situation?” You definitely can’t miss your payment, but maybe you have a family member or close friend who could help you out temporarily. Compare the advantages and disadvantages of deferring a car loan below:


  • By deferring a payment, you avoid the risk of repossession. (Repossession not only leaves you with no vehicle but also severely damages your credit score.)
  • You avoid paying expensive late fees.
  • Deferring your payment will give you additional time to sell your vehicle, which is possible if you still have equity left in your car.
  • You can mitigate issues with making payments in the future by using the extra time gained from deferring your loan to refinance your auto loan.


  • You’ll still be responsible for making the payment eventually. The payment isn’t eliminated, only sent to the end of your loan.
  • You may still have to pay interest. It depends on your lender, but some require you still pay interest for the month when you defer.
  • Your loan still accrues interest during your deferment. This means you could end up paying more in interest over the course of your loan than if you hadn’t deferred the payment.

These advantages and disadvantages may be relevant to your reasons for deferring a car payment. Do you need more time to sell your car to someone in Westlake? Will you be able to pay that extra interest? Keep all this in mind when deciding.

Mercedes-Benz of North Olmsted is Ready with More Auto Financing Information

Now you know more about deferring a car payment, but if you still have questions feel free to contact us at Mercedes-Benz of North Olmsted. We can also discuss other money-saving options, such as refinancing a car loan or paying off your car loan early.

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