One missed payment can affect you right away, and if you don’t pay for 90 days, lenders can repossess your vehicle.
Missed a car payment? Most lenders offer a 10- to 15-day grace period where you can settle the payment & not incur late fees. In doing so, you won’t be reported to the credit bureaus. Check your loan agreement for an exact grace period.
After the grace period, say roughly 16-29 days later, the lender will charge you a late fee that could be 5% of the payment. The amount could come up to approximately $25 to $50. Then, they may begin collection efforts.
Timeline of Late Car Payments
| Days Late | What Happens | Action to Take |
| 0-15 (Grace Period) | No late fees or credit reporting if paid within 10-15 days. Check your loan terms. | Check your loan agreement for the late fee and exact dates. |
| 16-29 | Late fee applies, typically 5% or $25-$50. Collection efforts may start. | Pay the fee & catch up to avoid escalation. |
| 30 | Reported to credit bureaus, damaging your credit score for 7 years. | Contact the lender to negotiate or pay immediately. |
| 31-59 | Credit impact worsens; limited payment options (e.g., no online scheduling). | Discuss payment plans or deferments. |
| 60-90 | Reported as 60 days late; repossession risk rises. Some lenders act after 30 days. | Act urgently. Explore refinancing or sale. |
| 90+ | High repossession likelihood; vehicle may be disabled or repossessed. | Communicate. Consider voluntary surrender. |
| Post-Repossession | Loan accelerated (full balance due); vehicle auctioned, possible collections. | Seek legal advice if the balance remains. |
What Happens If I’m a Month Behind on my Car Payment?
At a month or 30 days late, your payment will usually be reported to the credit bureaus, potentially with the amount considered late. You will see a significant drop in your credit score as well, as that will remain on your credit report for 7 years.
A Reddit user said they suffered -90 on their credit score due to 2-3 missed payments on a new car lease.
If you are 60-90 days late, the lender may again report to the credit bureaus with a 60-day late rating. At this point, collection agency involvement increases, and there is an increased risk for repossession.
While some lenders consider repossession at 30 days late, 90 days is more common. The timeline is different based on lenders & states, so it is important for you to know your specific terms.
Experian’s Q2 2024 report shows that 2.93% of auto loans are over 30 days past due as financial strain mounts due to higher interest rates & other factors. This is a reminder of why early interventions are important when dealing with late payments.
Interesting fact: Although Gen Zers have the lowest average monthly car payments, they have the highest delinquency rate at 7.5%. (According to Lendingtree.com)
How to Manage Late or Missed Car Payments
Step 1: Read Your Loan Agreement
Check your loan document. If you can’t find it, contact your lender to find out the grace period & late fee. Usually, you can find this information on your billing statement or your online account. Knowing these details will help you make further decisions.
Step 2: Talk to Your Lender Before They Reach Out
Call your lender before they reach out to you. Let them know about your situation, and you will most likely get a deal to prevent repossession. Lenders want to recoup their investment, and if they see you are acting in good faith, they generally come up with positive solutions.
Who knows… You could even push your car payment by a month.
Step 3: Set Up Payment Strategies
Use autopay, so you do not miss your date, resulting in late fees. Maybe use your savings, cut your spending, or earn additional income to resolve your payment.
Additional Solutions
If you can no longer make payments, have your lender allow the past due amount to be separated from your future payments or push your due date.
You can also file a credit insurance claim if you purchased insurance with your loan. Credit insurance may cover your payments if you’ve lost your job or become disabled, so make sure to check your eligibility.
Another option is to refinance if your credit hasn’t taken a big hit. Refinancing might reduce payments, so do this soon because the options for refinancing disappear quickly after being over 30 days past due.
Selling Your Vehicle
This could be your last resort if you are unable to pay your bills. Using the money from selling your car to pay off the loan can prevent repossession, but you also have to cover the difference, as you may owe more than the vehicle’s worth.
Voluntarily Giving Your Car Back
You may choose to simply surrender the car to the lender. While you may not have to endure the potentially embarrassing scenario of a repossession, the impact is similar on your credit report. You may still owe a deficiency balance (the difference between what you owed on the loan and what the lender sold the car for).
Try This Auto Loan Calculator
Auto Loan Calculator
How To Prevent Late Car Payments
The best way to prevent late car payments is to set up autopay, also known as a pre-authorized deposit in some countries. You do that once and forget about it as long as you can easily manage your finances.
If you want to stay in control, you could set up a specific payment date & try to make a habit of paying all your bills on that day every month. Mark a date in either a calendar or set up a reminder on your phone to pay your bills.
If you are questioning whether you’re going to be able to make the payment on time next month, reach out to your lender as soon as possible & discuss your options.
Frequently Asked Questions
Does a 7-day late car payment affect my credit score?
A 7-day delay typically doesn’t impact your credit score as long as you are within your 10- or 15-day grace period, but check with your lender directly to be sure. You could still maintain a 700 credit score with occasional late payments or with some that were missed a long time ago, but getting to 800 is tough.
How many days late can you be on a car payment before it affects your credit?
If you are late on a car payment, it is not normally reported to the credit bureaus until it is 30 days past due, while the lender may add fees when the grace period runs out.
How many car payments can you miss before repo?
Repossession could happen after just one missed payment, but many lenders do wait until you are 30-90 days behind before they act. If you act sooner than that, you can mitigate your repossession risk.
Can I delay my car payment?
Yes, you can delay your car payment by simply contacting your lender before the due date, requesting a deferment or payment plan. It’s best to do so before you are 30 days late to avoid credit reporting.
Also Read: How to Check a Used Car’s History: A Step-by-Step Guide
Final Say
Missing your first car payment can start a domino effect, & it’s something easy to panic about, but don’t let it ruin your financial well-being. You’re not the only one going through this, and I suggest seeking help or expert advice without hesitation.
The important things you need to do are act quickly, know the loan terms on your car, communicate with your lender, and set yourself up with things like autopay to help you keep track of upcoming payments.
