Yes, you can potentially extend a USAA car loan, but it's not a direct process you can do online yourself. Since USAA exited the auto loan business in 2022, they no longer originate new loans. However, they still service existing loans for members. If you're struggling with payments, you must contact USAA directly to discuss hardship assistance programs, which may include a loan extension or modification.
This process is known as a loan modification or forbearance agreement. It's not an automatic approval. You'll need to demonstrate financial hardship, such as job loss or a medical emergency. USAA will review your situation and may offer a temporary payment reduction or an extension of the loan term, which would lower your monthly payment but increase the total interest paid over the life of the loan.
What to Expect When You Call USAA:
- Financial Review: Be prepared to discuss your income, expenses, and the reason for your hardship.
- Options Presented: They may offer a payment deferral (pushing a payment to the end of the loan), a term extension, or a revised payment plan.
- Credit Impact: Any formal agreement to alter your original loan terms may be reported to credit bureaus. It's crucial to ask how it will affect your credit score.
- Fees and Interest: Understand if there are any fees for the modification and how the interest will be recalculated.
| Consideration | Before Extension | After Extension |
|---|
| Monthly Payment | Higher | Lower |
| Loan Term | Original (e.g., 60 months) | Longer (e.g., 72+ months) |
| Total Interest Paid | Lower | Higher |
| Loan-to-Value Ratio | Improving as you pay down | May remain high for longer |
The key is to be proactive. Don't wait until you've missed a payment. Contact USAA's loan servicing department as soon as you foresee difficulty. If a formal extension isn't possible, they can provide information on other options.
