Deferring Payment?

[nitto85]

Anyone have any experience with deferring a payment?

I'm financed through Ally Bank and was thinking about calling and having a payment deferred to the end of the loan. Its not something that I have to do, but just thought it would be nice to have some extra money for the holidays and be easier on my bank account lol.

I always make my payments on time, and pay extra so I don't think they'll give me a hard time about it, also this is the second vehicle I have had financed through them.

What are the cons to doing this other than extending the loan another payment? Will it hurt my credit report? Anything else I should know?

[BaldCamaroStud]

It all really depends on the company. Usually they will allow one deferment through the loan, some once a year, just depends?

Some will only allow if you explain in advance why, which is usually due to job loss, pay cut, medical emergency, etc.

Call and ask? Worst they can say is no... And if you do get one it won't hurt your credit.

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[CWI]

It depends on your bank or credit union. My credit union allows for members to skip their payment for November or December or both as a way to have money for Christmas.

The only down side is that it lengthens the term of your loan and results in a little more interest to the life of the loan. It should have no negative impact on a credit report, they wouldn't even know about it. Just don't neglect to make a payment, that would have an impact.

[jandaseve]

Theres usually a limit to how many times you can do it. I wouldnt do it if you dont have to. Someday you may actually need it for whatever reason, then it would suck if you used it up.

[upflying]

Deferring a payment is the same as taking out a loan for $500 or whatever your payment is. It will cost you extra fees and interest.
Many lenders allow "skip a payment" during the holidays. Just remember it's expensive.

[Ladybugsmom]

My credit union allows you to skip a payment around the holidays. There is a small fee to do it, and interest continues to add up at the same rate. This year, because I was unemployed for a month and money has been tight, it's worth it to have Christmas money. Normally, I wouldn't do it.

[nitto85]

Think I'm going to do it, at least 1 month maybe 2 if they'll let me.

I remembered after making this post, that I have some dental work I have to start getting done, starting next week, all of which I don't think is going to be covered by my insurance....waited way too long to go to the dentist .

Deferring a payment or two is definitely going to help me out for the holidays. Hopefully the fees won't be too bad, I hope to refinance next year anyways with my tax money, so I don't think extending the loan right now is a bad idea all things considered.

Thank you everybody for the advice.

[INTIMIDAT3R]

Deferring a payment isn't as nice as it sounds. You still have to make the interest payment, which if you borrowed the full amount on your car it's going to be most of the payment for the first few years of your loan.

[suplex]

I'm not trying to show off or anything, but I have been paying more than my payment since I bought the car in April '11. My payments are due every month on the 13th, and I just checked online and it says (because I have been paying more each month) that I don't owe anything until 03/13/12.

Which means I could literally skip December, January, and February (even though I won't) and not get penalized or anything.

I took a 5.5 year loan on purpose, so my payment would be lower, and I knew I would be able to send more money in each time. This way...if I need to...I could skip a payment, if something comes up, and it won't really hurt me.

I don't have the right, nor will I, to assume what anyone can pay towards a vehicle payment, but in the event you can send in a little more each time...it will add up and you eventually won't have to send anything for a given month.

Another huge benefit is that you will pay your car off faster if you can keep doing it.