Can You Defer a Car Payment?

Usually, buying a new car in Eatontown involves setting up a payment plan with a third party on an in-house finance center at a dealership. But when times get tough and you’re counting every penny, can you defer a car payment? There are some instances when the answer is yes, but you need to think carefully. Learn more about payment deferment on a car loan with the finance center at Jaguar Monmouth!

What is a Deferment on a Car Loan? Refinancing and Payment Calendar Adjustments

There are many reasons to defer a car payment, and just as many reasons to consider other options. Keep the following details in mind when you’re deciding on your next steps:

• Refinancing: Many Rumson residents have used refinancing on a variety of loans to extend the term of the loan, lower their interest rates, or get a lower monthly payment. This won’t defer payment but if you act proactively, it can help to reduce the size of your monthly payment. The catch is that vehicle manufacturers aren’t usually as keen to refinance, and you’ll need the help of another lender.
• Changing Payment Day: Payment deferment on a car loan is one thing, but changing the date to better fit with your financial calendar is a very practical way to help yourself. In really tough times, this can give you some breathing room.

What is a Deferment on a Car Loan? Cash Advance

Besides asking, “What is a deferment on a car loan?”, many Colts Neck drivers also ask about techniques for getting money to meet an immediate need, like a cash advance or a title loan.

• Cash Advance: Getting a cash advance and/or personal loan can help you prevent the need for a payment deferment on a car loan. 

• Installment Loans: Similar to cash advances, these can offer long repayment calendars.

• Title Loans: Many ask about these, which involve borrowing money against the equity of your vehicle. Unfortunately, these only work if you own the vehicle already!

Can You Defer a Car Payment? Losing Your Car

In the worst case scenario, Red Bank drivers who are going to have their vehicle repossessed want to preserve as much of their credit as possible. Adopt the following strategies:

• Selling Your Car: You’ve paid off some of your loan and you can relieve yourself of financial burden by selling your car — either to an individual or to a dealership that is very used to trade-ins. You can use this money to pay off significant portions of your loan, especially if you’ve been protecting your vehicle’s value. 

• Return to the Dealer: Returning your vehicle to the dealership you borrowed from will help to reduce your burden, but you will still be accountable for whatever remains after they sell the car.

• Someone Takes Over Your Loan: If you know someone with a decent credit score, there are cases where lenders will let you give your loan to them if they want the car!

Learn More about Car Financing with Jaguar Monmouth

Everyone has their reasons to defer a car payment, but what helps the most is planning well with a finance center in Eatontown. Jaguar Monmouth is happy to help drivers with all types of credit scores find a reasonable payment plan on their next dream car, with tools like our online payment calculator.

For those looking for great deals, we have pre-owned vehicles and regular lease specials. Please contact us today with any questions on your mind!