What is a payment deferral plan, and how does it work?
Because of the financial impacts that COVID-19 may have on our community, we’re offering our customers the option to defer their auto payment.
How it works
When you defer, we’ll extend your next due date to give you more time to make your payment. After the extension period ends, you resume making your regularly scheduled auto payments, and your contract or agreement will be extended by the number of payments you deferred.
Finance charges will continue to accrue on the unpaid balance at the contract rate, and by deferring one or more payments, you’ll pay more finance charges (for non-lease accounts). Also, deferring your payments won’t extend the duration of GAP, maintenance, life, or disability insurance that may be included in your contract.
We’re treating this as an unprecedented situation, so the auto payment extension you take during this time won’t count toward the number of extensions you’re allowed in the future. Once we return to business as usual (we’ll let you know when that happens), the number of extensions you’re allowed will be limited.
Will late charges apply to my account?
No, we won’t charge additional late fees during your extension period.
At what rate will my finance charges accrue, and will they be compounded over the extension period?
Finance charges will accrue at your contracted rate and aren’t compounded during the deferral period or otherwise.
When will I pay off the finance charges accrued?
When you make your first regularly-scheduled payment after the extension period, it will first be applied to satisfy any accrued finance charges and then to the outstanding balance. How long it will take to pay the finance charges accrued during the extension period will depend on the amount and timing of any payments you make.
What should I do if I don’t need my extension anymore?
You can make a payment at any time during your extension, and we’ll apply it as usual to your next scheduled payment.
Will my due date advance?
Yes, your due date will advance based on the number of months you choose to defer. You can call us or check the vehicle details section of yourSnapshot for your next payment due date and amount.
Will deferring my payment impact my credit score?
Deferring your auto payment through Ally shouldn’t have a negative impact to your credit score, but it’s important to note that for most consumers, payments on auto contracts are just one of many items that impact their scores.
Will deferring my payment impact my financing rate?
No, your payment deferral won’t impact your original contracted rate.
I’m behind on my payments. Can I still sign up for a payment extension?
Yes, you can still sign up for a payment extension even if your account is past due.
Your extension will include past-due payments and payments not yet due. For example, if you’re 1 payment past due and choose the 2 payment (2-month) deferral plan, your next payment will be due in 1 month.
Will I receive a confirmation when my extension has been processed?
We’ll send you a confirmation email after you set up your plan. Once your extension fully processes, we’ll send you a letter covering the details of the agreement.
If I defer my payments, can I pay the finance charges during those months to keep up?
Yes, feel free to continue making payments as you’d like.
When will I see my next due date and amount due?
You can check the vehicle details section of your Snapshot to view your next payment due date and amount. You’ll also receive a billing statement 19 days before your next payment is due.
Can I still make payments during the extension period?
You can make as many payments as you’d like during your extension period.