 TITLE: How Many Car Payments Can You Defer? CONTENT: Alternatives to Auto Loan Deferment\n-----------------------------------\nIf you can't get an auto loan deferment, here are some alternatives to consider.\n**Change your payment due date.** Are you facing a temporary cash shortage? Some lenders will let you change your payment due date. If your car payment is due a few days before payday every month, requesting a slightly later due date could be all you need to do to get back on track.\n**Ask your lender about hardship options.** If you don't think you'll be able to pay your auto loan going forward, contact your lender to ask if they can offer any hardship options. If you are proactive about your problems, some lenders will work with you, especially in unusual situations such as a major economic downturn.\n**Refinance your loan.** When you refinance an auto loan, you get a loan from a new lender, who pays off your old loan. Ideally, your new loan will have a lower interest rate, reducing your monthly payments. A longer loan term can also lower your monthly payments.\nBut refinancing an auto loan isn't a slam-dunk. You're most likely to be approved for refinancing your loan if you're current on your car payments, you have a steady income, and your credit score has improved since you got the original loan. In addition, lenders may not refinance a loan if your car is too old or if the loan payoff amount isn't within their approved range.\nRefinancing will generally cost you more in the long run than sticking with your existing loan. Even if your payments are smaller, a longer repayment term means you'll pay more interest over the life of the loan. Your current lender could also charge you a prepayment penalty for paying off the loan early, adding to your costs.\n**Get someone else to assume the loan.** If your auto loan agreement allows it (many don't), you may be able to transfer the loan to someone else. That person must have a credit score at least as good as yours and be able to assume payments of at least the same amount as yours. Once the lender approves them, they will be issued a new loan. If you want to take this route, you may still want to apply for a loan deferment so you won't have to make payments while waiting for your loan transfer to get approved.\n**Sell the car.** If you have equity in your car (that is, the car is worth more than you owe on the loan), you may be able to sell the car to a private party and use the proceeds to pay off the loan. This can be a smart move if you have an expensive car with a high monthly payment you can no longer afford. Depending on how much you get for the car, you might have money left over to buy a cheaper vehicle.\n**Voluntarily surrender the car.** Having a car repossessed because you can't make your payments will not only damage your credit score but can also be a humiliating experience. To avoid the embarrassment and show the lender you are acting in good faith, you can voluntarily surrender the car to the lender. The lender will sell the car and use the proceeds to pay off your loan. If the proceeds aren't enough to pay off your loan in full, however, you'll still be responsible for the balance. While a voluntary surrender has an extremely negative impact on your credit score, it is slightly less damaging than having a repossession on your credit report. END