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What Is an Auto Loan Grace Period?
A car loan grace period can enable you to pay after the due date without penalties.
Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
Updated · 2 min read
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NerdWallet's content is fact-checked for accuracy, timeliness and relevance. It undergoes a thorough review process involving writers and editors to ensure the information is as clear and complete as possible.
Shannon Bradley is a NerdWallet authority on auto loans. Before joining NerdWallet in 2021, Shannon spent 30-plus years as a writer, content manager and marketer in the financial services industry. In these roles, she developed financial expertise and created educational content covering a wide range of personal and business topics. Shannon is based in Newburgh, Indiana.
Julie Myhre-Nunes helps lead auto loans and cars coverage at NerdWallet. She has been in the personal finance space for more than 10 years. Before joining NerdWallet, Julie oversaw editorial teams at NextAdvisor and Red Ventures. Her personal finance insight has been featured on Forbes, The Boston Globe and CNBC. Julie’s writing has been published by USA Today, Business Insider and Wired Insights, among others. Email: jmyhrenunes@nerdwallet.com.
An auto loan grace period is a window of time past the payment due date when you can still make a payment without incurring late fees or other penalties. Car loan grace periods vary by lender and generally range from 10-15 days.
For example, if your auto loan payment is due on the 15th of the month, and your lender has a 10-day grace period, you would not be charged a late fee if you pay by the 26th of the month.
Most but not all auto lenders offer a grace period. You can check your loan agreement or talk to your lender to see if you have a grace period and how long it is.
» COMPARE: Find auto loan options that offer more flexibility
Is a car payment considered late during the grace period?
Lenders with a grace period consider a payment to be on time if it’s made within the designated time frame. During the grace period, your missed payment will not be reported to the three major credit bureaus as late, and you will not pay a late fee.
Once you’re past the grace period — for example, you haven’t made any payment on day 11 of a 10-day grace period — you will most likely incur a late fee. But your late payment still isn’t usually reported to the credit bureaus yet.
Typically, when a payment is 30 days late, or soon after, lenders consider the auto loan delinquent and report it to the credit bureaus.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account factors like maximum rates, variety of loan options, visibility of borrower requirements, accessibility, speed of funding, fees and more.
LightStream
New car purchase loan
Est. APRAnnual percentage rate (APR) represents the true cost of borrowing money. It is your interest rate plus any loan fees, and is expressed as a percentage.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account factors like maximum rates, variety of loan options, visibility of borrower requirements, accessibility, speed of funding, fees and more.
You will be redirected to the partner's website. The terms presented here are estimated and provided solely to assist you in finding a great lender. The terms may vary based on the partner's terms and conditions.
You will be redirected to the partner's website
Best for borrowers with good or excellent credit who want to buy a new car.
Min. score:
660
Amount:
$5,000 - $100,000
Annual percentage rate (APR) represents the true cost of borrowing money. It is your interest rate plus any loan fees, and is expressed as a percentage.Est. APR:
You will be redirected to the partner's website. The terms presented here are estimated and provided solely to assist you in finding a great lender. The terms may vary based on the partner's terms and conditions.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account factors like maximum rates, variety of loan options, visibility of borrower requirements, accessibility, speed of funding, fees and more.
MyAutoloan
New car purchase loan
Est. APRAnnual percentage rate (APR) represents the true cost of borrowing money. It is your interest rate plus any loan fees, and is expressed as a percentage.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account factors like maximum rates, variety of loan options, visibility of borrower requirements, accessibility, speed of funding, fees and more.
You will be redirected to the partner's website. The terms presented here are estimated and provided solely to assist you in finding a great lender. The terms may vary based on the partner's terms and conditions.
You will be redirected to the partner's website
Best for applicants who want to compare multiple new purchase loan offers. Bad- and fair-credit borrowers may qualify.
Min. score:
600
Amount:
$8,000 - $100,000
Annual percentage rate (APR) represents the true cost of borrowing money. It is your interest rate plus any loan fees, and is expressed as a percentage.Est. APR:
You will be redirected to the partner's website. The terms presented here are estimated and provided solely to assist you in finding a great lender. The terms may vary based on the partner's terms and conditions.
Auto Credit Express
New car purchase loan
Not yet rated
Auto Credit Express
New car purchase loan
Est. APRAnnual percentage rate (APR) represents the true cost of borrowing money. It is your interest rate plus any loan fees, and is expressed as a percentage.
You will be redirected to the partner's website. The terms presented here are estimated and provided solely to assist you in finding a great lender. The terms may vary based on the partner's terms and conditions.
You will be redirected to the partner's website
Best for new-car buyers who can’t qualify for a lower-rate loan through a traditional lender and need help finding a dealer with subprime lending.
Min. score:
525
Amount:
$5,000 - $50,000
Annual percentage rate (APR) represents the true cost of borrowing money. It is your interest rate plus any loan fees, and is expressed as a percentage.Est. APR:
You will be redirected to the partner's website. The terms presented here are estimated and provided solely to assist you in finding a great lender. The terms may vary based on the partner's terms and conditions.
What if I can’t make a car payment during the grace period?
If you know you can’t make your car payment before your grace period ends, contact your lender as soon as possible. It’s especially important to talk to them before your payment is 30 days late and likely to be reported to the credit bureaus.
Some lenders have auto loan hardship options — such as defering a payment to the end of the loan — which can help you catch up and avoid having an auto loan delinquency on your credit report.
What is the standard auto loan grace period?
Payment grace periods vary from lender to lender. For example, PenFed Credit Union has a grace period of 5 days compared to Digital Federal Credit Union with a grace period of 15 days. Consumers Credit Union offers a grace period of 10 days. Many lenders do not publicly share grace period information.
There are no federal laws pertaining to auto loan grace periods, so for the most part lenders have some leeway in determining if they will offer a grace period and its length. However, some states do have laws concerning how long a grace period should be before a late fee can be charged and how much that late fee can be. For that reason, a lender doing business in multiple states can have different grace periods and late fees.
Late auto loan payments often result from unexpected hardship, so it’s a good idea to know if you have a grace period and how long it is before facing a missed payment. To find out, check your loan agreement or talk to your lender.