Car Loan - 3 Months No Payments Guide

Posted on December 6, 2024

How 3 Months of No Car Payments Can Change Your Finances

As a suburban parent, I know how quickly expenses can pile up—especially around the holidays. Between gifts, festive meals, and activities, December feels like it comes with a price tag! Now imagine if you could hit pause on one of your largest monthly expenses—your car loan—for three months. Sounds like a game-changer, right?

At Rendez-Vous Nissan, we’ve seen firsthand how deferring car loan payments for 90 days can provide much-needed breathing room for families. Let’s explore how this works, the potential savings, and how you can make the most of this opportunity.

What Does 3 Months of No Payments Really Mean?

If you’re new to this concept, here’s the deal: many lenders allow you to defer your first car loan payment for 90 days. This isn’t free money or a discount; instead, it’s a way to give yourself time before starting monthly payments on a new or refinanced loan.

There are two ways to benefit from this:

1. Refinance Your Current Car Loan: Adjust the terms of your existing car loan to take advantage of the deferral period.

2. Get a New Car Loan for a New Vehicle: When purchasing a new car, ask for a 3-month payment deferral.

How Does It Work?

Let’s break it down with an example:

• Imagine you finance $20,000 for 84 months at 7.99% interest. Your monthly car loan payment would normally be $311.62.

• By deferring payments for 90 days, your loan extends to 87 months. Interest continues to accrue during the deferral period, adding $395.93 in interest. This increases your monthly payment slightly to $316.33.

While your payments increase by about $4.71 per month, you gain immediate flexibility during those first 3 months.

How to Make the Most of 3 Months of No Payments

Here’s where it gets exciting—what can you do with the money you would’ve spent on those three car loan payments?

Option 1: Save for the Holidays

Let’s face it, the holidays can be expensive. Setting aside the first three payments—$311.62 x 3 - $316.33 = $618.53—could cover gifts, decorations, or a holiday dinner without dipping into your savings.

Option 2: Treat Yourself

Take a moment to unwind with a weekend getaway or spa day. Suburban life can be hectic, and investing in some self-care is always a good idea.

Option 3: Invest for the Future

If you’re more inclined to think long-term, consider investing the money. For instance, putting $618 (after accounting for the slightly increased monthly payment) into an S&P 500 index fund with an average 7% annual return could grow to $4,704 in 30 years.

Why This is Perfect for Suburban Families

Flexibility During Busy Seasons

Suburban households often have fluctuating expenses. From back-to-school costs in the fall to summer activities for the kids, there’s always something demanding attention. Deferring car loan payments can provide much-needed relief during high-expense periods.

Peace of Mind

Knowing you have extra cash on hand can make a world of difference. Whether it’s tackling unexpected home repairs or planning a dream family outing, this program gives you financial flexibility when you need it most.

Convenience: It’s Easier Than You Think

One of the best parts about this option is that it’s easy and accessible. At Rendez-Vous Nissan, we can handle everything remotely. Whether you’re in Timmins, Toronto, or Ottawa, there’s no need to visit the dealership in person. Simply apply online, and we’ll take care of the rest.

Internal Link: Ready to learn more? Check out our Finance Options for all the details.

FAQs: What You Need to Know About Deferring Car Loan Payments

Q: Is this really free money? A: No, it’s not free money. Interest accrues during the deferral period, and your monthly payments will increase slightly to account for this.

Q: Can I do this with my current car loan? A: Yes! Refinancing your car loan is one way to take advantage of this opportunity.

Q: Are there any downsides to deferring payments? A: The main consideration is the added interest, which will slightly increase your overall loan cost. However, many find the immediate financial relief worth it.

Q: Does this impact my credit score? A: No, deferring payments as part of an approved program does not negatively impact your credit score.

Q: How can I get started? A: Contact us at Rendez-Vous Nissan or visit our Finance Page to begin the process.

Conclusion: Invest in Your Financial Flexibility

Deferring car loan payments for 90 days is more than just a financial tool—it’s an opportunity to plan, save, and make the most of your hard-earned money. Whether it’s funding holiday cheer, investing in your future, or simply catching your breath, this option offers something for everyone.

At Rendez-Vous Nissan, we’re here to help you navigate the process and make the best choice for your family. Ready to take the next step? Contact us today to see how we can help you hit pause on your car loan payments—and start focusing on what really matters.

External Link: For more financial tips, check out this guide on smart car financing.