Skip-a-payment on an auto loan lets you miss a monthly payment with the lender's permission, but interest keeps building and there is often a fee, so you pay more over the life of the loan. Bay Federal Credit Union, for example, lets eligible members skip two payments a year on qualified loans for a $30 fee per skip, and its skip-a-payment page says interest continues to accrue during the skipped period.
Where the extra cost comes from
During the skipped month, interest keeps accruing on the balance. When payments start again, more of the next payment goes to interest, or the loan runs longer, or a larger final payment is left at the end. Ask which one your lender does. Our loan-to-value guide covers why a slower payoff can leave you owing more than the car is worth.
Skip versus deferment
Lender skip programs are usually marketing offers for borrowers in good standing. A hardship deferment or forbearance is a separate request. The CFPB guide on missed car payments suggests contacting your lender or servicer early, asking about payment plans, a due-date change or forbearance, and getting any agreement in writing.
Insurance and add-ons
Ask whether skipping affects any GAP or credit insurance tied to the loan, and whether the coverage still runs. Our GAP insurance guide covers how GAP works.
Payoff and refinancing
A skip can change the payoff amount you need to sell or refinance. Ask for a written payoff before you list the car. Our prepayment penalty guide covers early-payoff rules.
When a skip can make sense
A one-time skip can help with a short gap, such as a delayed paycheck, if the fee and extra interest are small next to a late fee and a credit mark. It makes less sense as a habit, or when the loan already runs long. If you skip, set a reminder for the next due date so the program does not turn into a missed payment by mistake.
Questions to ask the lender
Ask how many skips a year are allowed, what the fee is, whether interest accrues, how the skipped amount is repaid, whether the skip is reported to credit bureaus and whether it changes your payoff date. Get the answers in writing or in a saved message.
A quick cost check
On a simple-interest loan, interest keeps building every day you owe the balance. Ask the lender to show the new payoff date and the total interest with and without the skip, then add any fee. If the difference is more than you expected, a short call about a due-date change may serve you better.
Reading the history report
Read the title section first: any salvage, rebuilt, flood or lemon brand changes the value more than anything else. Then line up the odometer readings by date and look for gaps or drops. Check the number of owners and the states where the car was registered. An approved NMVTIS check adds insurer and salvage-yard records. Our odometer discrepancy guide explains odd mileage entries.
Paperwork to keep
Keep the buyer's order, the retail installment contract, the odometer statement, any Buyers Guide, warranty or service-contract papers and every payoff or lien letter in one folder. Photograph the window sticker and the dash mileage on the day you sign. If a dispute comes up later, dated paperwork is what a lender, an insurer, a dealer licensing agency or a court will ask for first.
Compare the financing
Get a preapproval from a bank or credit union before you visit, so you can compare it with the dealer offer on the same term. Compare the APR, the amount financed and the total interest, not just the monthly payment. The CFPB auto loan tools walk through what to read on an offer. Decide on add-ons such as GAP and service contracts on their own merits, and get the price of each one in writing.
What the report costs
As of early November 2026 a CARFAX bought direct usually costs around $44.99, and AutoCheck sits a little lower. We are a licensed CARFAX and AutoCheck reseller, not affiliated with CARFAX, AutoCheck or Experian. Our guest price has been about $5.50 a report, about $4.50 for members, and about $6.75 for a CARFAX and AutoCheck bundle. Confirm the price at checkout, since it can change.
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