Santander's Deferral Policy for Auto Loans

Santander does offer payment deferrals on auto loans, but the terms depend on your loan type, payment history, and current financial situation. A deferral postpones your payment to the end of your loan term rather than forgiving it—you will still owe the money. Santander typically allows one deferral per loan, though this varies by account.

The process starts with a call to Santander's customer service or through your online account. You must request the deferral before your payment is due, not after it has already missed. Santander will review your account and may ask about your hardship to determine whether to approve the request.

If approved, your deferred payment gets added to your loan's end date. This means your loan will take longer to pay off, and you will pay more interest over time. Santander will not waive interest or reduce the total amount owed.

Key Takeaways

  • Santander allows one deferral per auto loan, which postpones your payment to the end of your loan term rather than canceling it.
  • You must request a deferral before your payment due date, not after you have already missed it.
  • Deferred payments are added to your loan's end date, meaning you will pay more interest and take longer to pay off the loan.
  • Contact Santander's customer service by phone or through your online account to request a deferral and explain your situation.
  • A deferral will not appear on your credit report as a missed payment if approved before the due date.

How to Request a Deferral from Santander

Call Santander's customer service number on the back of your loan statement or bill. Have your account number and loan details ready. Explain that you are requesting a payment deferral and describe your financial hardship—job loss, medical emergency, or temporary income reduction are examples Santander considers.

Santander may ask how long you need the deferral and whether you can resume payments after one month. Some accounts may have access to for a one-month deferral only; others may receive two months depending on the circumstances. Be honest about your timeline so Santander can set realistic expectations.

You will receive a decision within a few business days. If approved, Santander will send a confirmation letter or email showing the new payment schedule. Keep this document for your records. If denied, ask what other options are available—Santander may offer a loan modification or a temporary payment reduction instead.

What Happens to Your Credit If You Defer a Payment

A deferral approved before your payment due date will not be reported to credit bureaus as a missed payment. Your credit report will show the loan as current. This is the key difference between a deferral and a late payment: timing matters.

If you request a deferral after your payment is already late, Santander may still approve it, but the late payment will already be on your credit report. Late payments stay on your report for seven years and can lower your credit score by 100 points or more.

Once your deferral ends and you resume regular payments, your credit will begin to recover if you make all future payments on time. The deferral itself does not damage your score the way a missed payment does.

When Santander May Deny a Deferral Request

Santander will deny a deferral if you have already used one on this loan. Most auto lenders, including Santander, limit deferrals to one per loan. If you have already deferred a payment, you will need to explore other options.

A deferral may also be denied if your account is already in default or if you are behind on multiple payments. In these cases, Santander may require a loan modification or forbearance agreement instead, which restructures your payments over a longer period.

If your loan is through a subprime lender or a special finance program, deferral policies may be stricter. Check your loan documents or call Santander to confirm what options are available for your specific loan type.

Alternatives If Santander Denies Your Deferral

A loan modification restructures your remaining payments over a longer period, lowering your monthly payment. This is different from a deferral because the payment reduction is permanent, not temporary. Santander may offer this if you cannot afford your current payment.

A forbearance agreement temporarily reduces or pauses your payments for a set period—usually three to six months. Unlike a deferral, forbearance is negotiated and documented in writing. After forbearance ends, you resume full payments or enter a modified payment plan.

If you are facing repossession, contact Santander immediately. Some lenders will work with you to avoid repossession rather than lose the vehicle and pursue deficiency judgment. Explain your situation and ask what hardship options are available.

The Cost of Deferring a Payment

When you defer a payment, interest continues to accrue on your loan balance. If you defer one $400 payment, you will owe that $400 plus the interest that would have been charged during the deferral period. Over the life of the loan, this adds up.

For example, if you have 24 months left on your loan and defer one payment, your loan will now take 25 months to pay off. You will pay one additional month of interest. On a $15,000 loan at 8% interest, that could mean an extra $100 or more in total interest.

Before requesting a deferral, calculate whether you can afford the longer payoff period and higher total cost. If you can catch up on the payment within a month or two, a deferral may be worth it. If your financial hardship will last longer, a loan modification might save you more money.

What to Do If You Miss a Payment Before Requesting a Deferral

If your payment is already late, call Santander immediately. Explain your situation and ask whether a deferral is still possible. Some lenders will approve a deferral even after a payment is late, though the late payment will remain on your credit report.

Ask Santander how many days past due you are and whether the account has been reported to credit bureaus yet. Late payments are typically reported after 30 days past due. If you are within the first 30 days, there is still time to prevent a credit report entry.

If a deferral is not available, ask about a catch-up plan where you pay the missed payment plus a portion of your regular payment over the next few months. This is less formal than a modification but may prevent further damage to your credit.

Frequently Asked Questions

Can I defer my Santander car payment if I am already 30 days late?

Yes, Santander may still approve a deferral, but the late payment will already be on your credit report. The deferral will prevent further late payments from being reported, but the 30-day late mark stays for seven years. Contact Santander immediately to request the deferral.

How long does a Santander deferral last?

Most Santander deferrals last one month, though some accounts may may have access to for two months. The deferral period depends on your loan type and Santander's assessment of your hardship. Santander will specify the exact end date in your approval letter.

Will deferring a payment make my loan more expensive?

Yes. Interest continues to accrue during the deferral period, and your loan will take longer to pay off. You will pay more total interest over the life of the loan. A loan modification may be cheaper if your hardship will last more than a few months.

What happens if I cannot resume payments after my deferral ends?

Contact Santander before your deferral ends and explain that you still cannot afford the payment. Ask about a loan modification or forbearance agreement. Do not wait until you miss a payment again—proactive communication gives Santander time to work with you.

Can I defer my Santander car payment twice?

No. Santander typically allows one deferral per loan. If you have already used your deferral, you will need to explore other options such as a loan modification, forbearance, or payment reduction plan.