Late payment on auto loan


Missing a car loan payment can have serious consequences. If you’re behind on your car loan, you need to take action immediately to get caught up.

What is a late payment on an auto loan?

A late payment on an auto loan is a payment that is received after the due date. This late payment may be subject to a late fee.

The consequences of a late payment on an auto loan

If you’re late on your auto loan payments, there are a few potential consequences. The first is you may incur a late fee. This fee will be added to your outstanding balance and will accrue additional interest. Additionally, your lender may report your late payment to the credit bureaus, which can negatively impact your credit score. Finally, if you’re severely delinquent on your payments, your lender may repossess your vehicle.

Read this, too: Prepayment penalties page.

How to avoid a late payment on an auto loan

If you’re behind on your car payments, you may be wondering how to avoid a late payment fee. Fortunately, there are a few things you can do to keep yourself from being charged a late fee on your auto loan.

One of the best things you can do is to call your lender as soon as you know you’re going to be late on a payment. Many lenders will work with you to set up a payment plan or extend the due date of your payment. If you let your lender know that you’re having trouble making a payment, they may be more likely to work with you to avoid charging a late fee.

You may be able to have a late fee waived. Forst, contact your lender and explain why you were late on your payment. Many lenders will waive a late fee if it was your first time being late or if there were extenuating circumstances beyond your control. You can also try asking for the fee to be reversed if it was applied in error.

Another option is to set up automatic payments for your auto loan. This way, you can ensure your payments are always made on time, and you won’t have to worry about forgetting to make a payment or being charged a late fee.


If you’re more than 30 days late on your auto loan, your lender may report the delinquency to the credit bureaus. This can damage your credit scores and make it more difficult and expensive to borrow in the future. You may be able to negotiate a payment plan with your lender to bring your loan current, but you’ll still likely have to pay a late fee. If you’re struggling to make your auto loan payments, consider talking to a certified credit counselor for help with developing a budget and exploring debt relief options.