CarMax Payment Deferment: Limit, Charges & Rules

CarMax Payment Deferment

CarMax, the largest used-car retailer in America, primarily caters to a specific segment of American car shoppers. This segment consists of individuals with good or prime credit scores, indicating a strong creditworthiness. On average, customers in this category tend to secure auto loans with interest rates of around 7%. It’s important to note that while this 7% figure serves as a general benchmark, actual interest rates can fluctuate within a range of plus or minus 2%. The variability in rates is primarily driven by the diversity in customers’ credit scores, as individuals with higher credit scores typically receive lower interest rates, while those with slightly lower scores may experience rates at the upper end of the range.

For most of us, a reliable vehicle is as essential as food and shelter. The ability to commute and handle daily tasks hinges on having a car at our disposal. However, life can throw unexpected financial challenges our way, making it difficult to meet our car payments. Missing a car payment and having your vehicle repossessed can quickly spiral into a never-ending cycle of financial hardship.

CarMax provides payment accommodations to assist customers facing short-term financial hardships. These accommodations come in the form of due date changes or payment extensions. By offering these flexible options, CarMax aims to support its customers during difficult times, ensuring that they can navigate temporary financial difficulties with greater ease and peace of mind. Short-term hardships can include various situations such as changes in employment status, unexpected medical emergencies, adverse consequences resulting from natural disasters, and other unforeseen challenges.

CarMax offers borrowers the option to defer a car payment, which means you don’t have to make the monthly payment immediately. Instead, the deferred amount is added to the end of your loan, potentially lowering your current monthly payments when times are tough.

How are finance charges calculated?

Finance charges are calculated based on your Annual Percentage Rate (APR), the number of days since the last payment, and the outstanding principal balance as of the last payment. They accrue daily, starting from the contract date. If payments are late or less than scheduled, you may owe more in finance charges, and vice versa. Your payment history affects your final payment amount.

How are monthly payments applied?

Payments are applied first to accrued finance charges since the last payment, then to the principal balance. Any remaining funds are allocated to future scheduled payments and/or fees, 18 days before the due date.

How is my payment divided between principal and finance charges?

Payments go first toward finance charges since your last payment, then to the principal balance. Any excess payment goes to future scheduled payments. If you have an outstanding balance, payments first satisfy that balance, then finance charges, followed by principal and future fees.

Why is my final payment higher than my regular monthly payment?

The final payment amount can vary based on your payment history and may include any past due amounts, unpaid fees, or other costs accrued. Payments made after the due date can increase the final payment due to accrued finance charges. If you’ve requested extensions, due date changes, or incurred fees, this can also affect the final payment. Notifications about higher final payments are sent 12 and 6 payments before your account matures.

Does CarMax do deferred payments?

CarMax provides the option for deferred payments to assist customers facing temporary financial challenges, such as job loss or medical emergencies, with specific terms and eligibility criteria that should be discussed with their financing department.

How do I postpone my CarMax payment?

To postpone a CarMax payment, contact their customer service or financing department well in advance of your due date, explaining your financial hardship situation. Follow their guidance, complete any necessary forms, and provide the required documentation. Review the terms of the payment extension carefully, including any applicable fees or interest during the extended period. If you agree to the terms, make the extended payment on time to avoid late fees and credit repercussions. Keep in mind that the process and terms may vary, so clear communication with CarMax is crucial when seeking payment accommodations.

How many times can you do deferred car payments in CarMax?

The specific number of times you can defer car payments with CarMax may vary depending on the terms and conditions of your individual auto loan agreement and CarMax’s policies. To obtain accurate information about the number of times you can defer car payments or the specific terms of your auto loan agreement with CarMax, it is advisable to reach out directly to CarMax’s customer service or financing department. They will be able to provide you with detailed information based on your unique loan agreement and situation.

Do car payment deferrals hurt credit?

Car payment deferrals can impact your credit, as CarMax reports to TransUnion, Experian, and Equifax credit bureaus. The deferrals might potentially be seen as missed or late payments, affecting your credit score. It’s important to communicate with your lender and understand the credit reporting policies when considering a deferral.


Remember, missing car payments can have significant consequences, including repossession, damage to your credit history, and high interest rates on future loans. It’s essential to explore your options and communicate with your lender to find a solution that works for your unique situation. Financial challenges can happen to anyone, but with the right approach, you can overcome them and secure your financial future.