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Coronavirus Car Payment Relief

April 12, 2020


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.

Car Payment Relief During Coronavirus

Payment Deferral Programs

Several automakers are currently offering payment deferrals for customers experiencing financial hardship due to the corona virus pandemic. Many automakers are also offering deferred payments and special interest rates on new purchases, and we’ve assembled a separate resource for anyone considering buying right now.

If you’re leasing your car, extensions are available from most automakers. We’ve written a thorough guide for what to do if your lease is ending during the coronavirus pandemic. Lessees should have a plan, so they don’t risk penalties or an automatic contract extension that could cost them extra.

BMW and Mini are urging customers in need of financial or account assistance to contact their financial services customer service to discuss what assistance may be available. They will be working with customers on a case-by-case basis.
BMW Financial Services website
Mini Financial Services contact page

FCA, which encompasses FiatChryslerDodgeJeepRam 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 ChevroletBuickGMC and Cadillac) has set up hotlines for owners with questions or concerns about their loans.
Visit Chevy Cares

Honda and Acura are offering up to 60 days of deferred payments, along with late-fee waivers for owners impacted by the crisis.
Honda Financial Services contact page
Acura Financial Services contact page

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

Jaguar Land Rover is extending customer leases for up to six months.
Visit Jaguar coronavirus information
Visit Land Rover coronavirus information

Kia currently has up to 90-day payment deferral available for existing customers impacted by the coronavirus pandemic.
Visit Kia Motors Finance

Mazda has been working with its financing partner, Chase, to provide relief to owners. Chase has established a resources page where you can find out more.
Visit the Chase Auto Loan and Lease COVID-19 resources page

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

Both Wells Fargo and Ally Financial service a lot of car loans, and both have hotlines available for consumers facing financial hardship during this emergency. So even if you financed a used car, if you did so through your bank, there may be recourse. Both companies can also be contacted about existing credit card, personal loan, or other types of debt.
Visit Wells Fargo’s COVID-19 information center
Visit Ally Financial’s coronavirus response center

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.

End-of-Lease Options

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.

Loan Deferment FAQs

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.

Other Consumer Resources

How to reduce the risk of coronavirus in your vehicle: Whether in your personal car, a ride share, or even on public transit, we lay out how to minimize your risk of infection.

What to do if you can’t make your car payment: We offer advice if you find yourself unable to make your next car payment.

Stay one step ahead of the repo man: Is your car in danger of being repossessed? We help owners facing repossessions understand their rights and plan next steps.

How to get out of a bad car loan: Find out steps you can take to save money if you’re stuck with a high-cost or high-interest car loan.

COVID-19 car buying resources, advice and incentives: If you need to buy a car during the coronavirus crisis, we have all the information you need.

How to have your new car delivered to your home: It’s a low-stress, no-wait way to get your new car and minimize your exposure.

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