Automakers are setting up programs to allow borrowers to defer loan payments if they have been financially impacted by the coronavirus pandemic. COVID-19, also known as the coronavirus, has unsettled the stock market and cast a pall of doubt over businesses both large and small. But the personal impacts of social distancing, isolation and uncertainty are equally as trying. Widespread business closures are causing financial hardship for a number of Americans, who now find themselves unable to pay all of their bills. Any worries we can lift from your mind could allow you to focus more energy on getting you and your family through this crisis.
To that end, Oz Leasing put together a list of automakers and lenders that are offering borrowers avenues of relief.
We’ll be updating this article regularly to help you figure out if making your next car payment is one worry you can let go of for the time being.
FCA, which encompasses Fiat, Chrysler, Dodge, Jeep, Ram and Alfa Romeo, is encouraging customers to contact their loan servicer to discuss payment relief options. FCA customers may need to contact either Chrysler Capital or Ally Financial (discussed below). Chrysler Capital coronavirus response
The Ford Credit homepage has a number existing owners can call to discuss payment options for their Ford or Lincoln. Visit Ford Motor Credit
General Motors (which includes Chevrolet, Buick, GMC and Cadillac) has set up hotlines for owners with questions or concerns about their loans. Visit Chevy Cares
Hyundai and Genesis are both offering up to six months of payment relief for owners who lose their jobs, making it the most generous outright assistance package we’ve seen. Hyundai Assurance was originally introduced in 2009 during the economic downturn to offer help to consumers. Visit Hyundai Assurance Visit Genesis Cares
Maserati is offering relief too. The high-end carmaker is waiving late fees and insufficient funds fees and offering 90-day payment due-date extensions and lease extensions of up to six months. Visit Maserati Capital
Mitsubishi Motors is allowing owners to defer payments for up to 120 days if they’ve financed through Mitsubishi’s partner Ally Financial. You can find contact information for Ally Financial below. Mitsubishi’s coronavirus statement
Nissan’s finance arm, NMAC, has a hotline set up for customers to discuss payment rescheduling for Nissan and Infiniti vehicles. As with Ford, Toyota and others, it’s hard to say what relief exactly owners can expect or how much it may vary from person to person, but there’s no reason not to reach out for help if you need it. Visit Nissan’s COVID-19 response page
If you’re leasing a Porsche, the company will extend your lease for up to six months (it normally offers a two-month extension contract). Certain customers can also defer lease payments for 30-60 days based on individual need. Visit Porsche Financial Services
Toyota Financial Services and Lexus Financial Services can be reached by phone or email to discuss payment extensions and deferments for leases and loans. We appreciate that Toyota, like other brands, is including its luxury arm to help those buyers who may also suddenly find themselves on less solid footing. Visit Toyota Financial Services Visit Lexus Financial Services
Volkswagen says buyers affected by the COVID-19 pandemic can get up to 90 days of payment assistance. Visit Volkswagen Credit
Having Trouble Making a Payment? Talk to Your Lender
In hard times, a number of people tend to overlook their car payments in favor of more critical purchases. This is understandable, but it could harm your credit in the long run. Don’t be afraid to call your lender. Others are in the same predicament, and lenders may be able to offer reduced payments or give you an extension. This communication is important to show that you are committed to paying the loan and keeping the account in good standing.
If you’re leasing a car and the term of your lease is coming to an end, you may be able to get an extension on either a month-to-month basis or for a short fixed term. Call the company servicing your lease to find out what options may be available. If you feel as though you won’t be driving the car much and want to turn it in, get in touch with the dealership to see if you can schedule a quick drop-off, handling most of the paperwork beforehand.
Q: What is a loan deferment? A: A loan deferment is an agreement between you and your lender that allows you to delay monthly loan payments for a specified period of time. The skipped month or months are then added at the end of the loan, effectively increasing the length of your loan. For example, if you have a 60-month loan and defer your payments for three months, you’ll actually finish paying off your loan after 63 months. Keep in mind that interest typically continues accruing during the deferral period, so you will generally pay more in interest over the length of the loan.
Q: Does a car loan deferment hurt my credit? A: Make sure your lender approves the loan deferment before you stop making payments. Deferment is not the same as delinquency, and your credit will not be affected so long as you and your lender are on the same page.
Q: How do I get a car loan deferment? A: Getting your car loan deferred starts with contacting your lender and explaining your unique situation. Many lenders, especially the captive finance companies owned by the automakers, have enacted policies specifically targeting those affected by COVID-19-related job loss.
Q: How does a deferred car payment work? A: A deferred car payment gives you temporary financial relief from making payments for a specified period of time. The missed payments are then added to the end of the loan, increasing the calendar length of your loan. Unless stated otherwise, you will accrue interest during the deferral period, so the overall amount of interest paid through the length of the loan will be higher.
Q: How long can you defer car loans? A: The length of time you can defer car loans depends on your specific situation and your lender’s deferment policies. Some automakers’ financial arms are allowing for deferred payments for up to 30 days, while some offer up to 120 days. Some also require proof of job loss, such as unemployment insurance documentation.