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  1. #1
    eddunn1 is offline Junior Member
    Join Date
    Feb 2003
    Posts
    28

    Auto Loan Grace Period

    does anybody know if there is a grace period required by law when paying on a vehicle loan? i was looking over the contract for the car i just financed and noticed that it specified no grace period, but neglected to mention what the late charges would be or when they would be charged. it's very vague. all it mentions about the late charge is that it would be assessed according to the state law where the customer lives. i just thought this was odd. every new car i have ever purchased allowed a 10 day grace period, and i always thought it was a legal requirement. thanks for any info. ed

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  3. #2
    lbrown59 is offline Senior Member
    Join Date
    Feb 2001
    Posts
    17,876

    Re: Auto Loan Grace Period

    Originally posted by eddunn1
    does anybody know if there is a grace period required by law when paying on a vehicle loan? i was looking over the contract for the car i just financed and noticed that it specified no grace period, but neglected to mention what the late charges would be or when they would be charged. it's very vague. all it mentions about the late charge is that it would be assessed according to the state law where the customer lives. i just thought this was odd. every new car i have ever purchased allowed a 10 day grace period, and i always thought it was a legal requirement. thanks for any info. ed
    From what I have read car loans don't generally come with a grace period.

  4. #3
    bev3180 is offline Junior Member
    Join Date
    Oct 2003
    Posts
    31

    Re: Auto Loan Grace Period

    Don't know how much it varies between lender but my Cap One Auto loan posts a late fee of $10.00 on day 11 after the due date. They also start calling every day until it is paid. A 30 day late is not reported until day 31.

  5. #4
    tonyd is offline Registered User
    Join Date
    Sep 2003
    Posts
    365

    Re: Auto Loan Grace Period

    Yep it depends on the lender; and every car loan I have had did have grace period. I do not believe ther is any law though.

  6. #5
    eddunn1 is offline Junior Member
    Join Date
    Feb 2003
    Posts
    28

    Re: Auto Loan Grace Period

    i have experienced the same thing....10 day, then on the 11th the late fee kicks in, and reported to the cb on day 30....this was the norm the last three new cars i have owned over the years....that's why i thought this one seemed a little odd. thanks....ed

  7. #6
    sam
    sam is offline Senior Member
    Join Date
    Mar 2000
    Posts
    3,706

    Re: Auto Loan Grace Period

    i asked my credit union. they said up to 14 days is fine, without penalty or derogatory marks past the due date.

    On the 15th day, you'll be punished (in her own words).

    I thought thats pretty cool. I Always pay the car loan in advance as is reduces the interest, but if i needed to ever pay at the last day, i could forward a full payday (due to my choosing the due date) late and it wouldn't be counted against me.

    Choose a good lender, don't get GEORGE'D.

  8. #7
    prd2b is offline Junior Member
    Join Date
    Jul 2003
    Posts
    11

    Auto Loan Grace Period

    Funny thing is I know of a finance company who stated upfront they had no grace period. . .but after the 11th day that's when the calls started and the late fee got added to the account. Sounds like a grace period to me.

    As a matter of fact I was told on one of the cars I owned the first year I had it that they had no grace period, and then after a year of having the car and paying on time she tells me they have a 15-day grace period.

  9. #8
    iambroke is offline Registered User
    Join Date
    Jul 2003
    Posts
    499

    Auto Loan Grace Period

    I don't know if it's a legal requirement but my GMAC car loan allows a 10 day grace period before payments are considered late with a late penalty (payment coupon shows payment on the due date and then payment after 10 days of the due date). I verified this with them when I couldn't make the payment on the exact due date but mailed it and they received it within the 10 days grace period. They said it would not show up on my credit unless it was 30 days past due and that there is a 10 day grace on that loan.

    I also have an auto loan with Chase and I don't know what their policies are as the loan is really new (just got it 2 months ago) and I make online payments so it's not late.

  10. #9
    jenz is offline Registered User
    Join Date
    Nov 2003
    Posts
    1,012

    Auto Loan Grace Period

    FYI-

    credit unions do not have to follow the same rules as banks, banks do not have to follow the same rules as finance companies (non-banks). you get the jist. credit unions can buy deeper, have better rates and grace periods, etc. and No, i do not work for one, i work for a bank.

  11. #10
    dario1979 is offline Member
    Join Date
    Sep 2001
    Posts
    99

    Auto Loan Grace Period

    I am not sure if all states are the same but in California you have 10 days from the due date before a late fee of 5%of the unpaid portion of the monthly amount due. True the banks wont report the account to the CRAs until the 31st day but keep in mind you are paying intrest daily on your loan so if you make your payment 9 days past the due date you wont be assessed a late fee but you will be paying intrest for the 30 days that the payment was due in addition to the additional 9 days that you were later. Further more you are still paying intrest on the days in the up coming months payment so essintially you are paying twice the intrest for every day that you are late. also what the banks wont tell you is that this will make your last payment a lot more than what your current monthly payments are. so if at all possible pay your account 10 days early and with an extra 50-100 dollars each month towards the end of the loan you will shave off a few months easy.

    d

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