The COVID-19 pandemic has already affected the lives of many Honda owners, and it continues to spread rapidly. As its reach expands, the impacts of shelter-in-place orders, mass layoffs, and other issues are becoming increasingly burdensome. If you financed your Honda with an auto loan, you might qualify for financial relief from your lender at this time.
Your Honda lender is currently offering a 60-day payment deferment for those who have been financially stressed by the COVID-19 pandemic. With this deferment, you can push back the due dates for the next two monthly payments to find some much-needed financial relief. Also, all late fees that are related to pandemic-induced hardship will be waived upon request during the deferment period.
Are you wondering what relief is available if you leased your Honda? If the end of your lease is approaching and you wish to stay in your vehicle, you can request an extension to your lease term on a month-to-month basis. Another option may be to set up a short fixed-term extension. If you prefer to surrender your Honda at the end of your lease, now is the time to contact your Honda dealership so that you can make plans for a hassle-free vehicle surrender.
With an auto loan deferment, the payments during the deferment period are not forgiven or waived. Instead, the loan term is extended by the length of the deferment, and you will make the skipped payments during that extension period. Interest will continue to accrue on the remaining balance owed during the deferment period.
If you miss your auto loan payments without setting up a deferment plan with your Honda auto lender, the missing payments will be reported to the credit bureaus as late payments. On the other hand, if your request for a loan payment deferment is approved, your credit rating will not be negatively affected.
The most convenient way to request a Honda auto loan payment deferment is to request it online through Honda Financial Services, which you may be able to do if it is your first online request. Or you can contact the customer service department for your loan servicing company. Simply request the deferment over the phone to initiate the process.