Ally Auto Grace Period & Late Payment Policy Explained

No matter how well you plan ahead, unexpected financial situations can arise. When they do, it's often reassuring to know your auto loan provider's grace period and late payment policy.

Ally Auto's financing department offers a grace period for late payments and does its best to work with customers when possible.

Silver car parked in a driveway

Ally Auto’s grace period varies by state and customer, although it typically ranges from seven to 15 days.[1]

If you know you won’t be able to make up your payment during the grace period, you may also be eligible for a payment deferral.[1]

Find out more about Ally Auto’s late payment policy below, including how to find your grace period, how to request a deferral, and when Ally Auto repossesses.

Ally Auto Grace Period & Late Payment Policy

Ally Auto’s grace period for late payments varies by state and customer but is generally either seven, 10, or 15 days.[1]

Ally won’t charge a late fee during this period. Once you’re past the grace period, late fees vary by customer.[1][2]

You can find out your exact grace period and late fee amount by contacting Ally Auto at (888) 925-2559 or reviewing your contract.[1][2]

Payment Deferrals

You should contact Ally as soon as you know you’re unable to make a payment to see if you qualify for a payment extension (also known as a deferral).[1]

Payment extensions allow you to skip a payment and defer it until the end of your loan. However, note that because Ally will add the payment to the end of your loan, it may accrue additional interest charges.[1][3]

When you request a deferral, a representative will run your information through Ally’s electronic system, which will either approve or deny your request.[1]

There’s no specific number of times you can skip a payment during the duration of your auto loan; this will be up to the system’s generated response.[1]

You should also make sure to cancel Auto Pay for the month if you skip a payment.[3]

Tip: If you’re facing continual financial hardship and struggling with your auto loan’s payment amount, you may be able to modify the terms of your contract to lengthen the life of your loan and lower payments. You can find out more by contacting Ally at (888) 925-2559.[4]


If you stop making payments and Ally Auto can’t get in contact with you to work something out, it generally repossesses vehicles after 90 days.[1]

However, Ally does its best to work with customers in order to avoid repossession.[1] See more on Ally Auto’s repossession policy.


When does Ally Auto report late payments to the credit bureaus?

Ally Auto sends late payments to the credit bureaus 30 days after they’re due.[1]

Will Ally Auto remove the late payments it reported to the credit bureaus if you catch up on them?

No, once Ally reports a late payment to the credit bureaus, it won’t remove it.[1]

How long does it take Ally Auto to process payments?

This can vary from the day you make the payment to two business days later. However, the system displays the date you make the payment as your payment date, so the processing time shouldn’t lead to a late payment. The only exception is if you use a third party to make payments; if so, you’ll have to check with the third party for processing times.[1][2]

Can you make Ally Auto loan payments with a credit card?

No, you can only make payments directly from a savings or checking account, or with a debit card. Note that Ally charges a fee of around $3 for debit card payments.[1]

In Summary

Ally Auto offers a grace period of seven, 10, or 15 days, depending on the customer and state. Once the grace period has passed, Ally charges a late fee, which you can find in your contract.[1]

You may qualify to skip a payment if Ally’s electronic system approves this request.[1]

In the event that you stop making payments and Ally Auto can’t reach you, it generally repossesses vehicles that fall 90 days behind on payments.[1]

You can share your own advice or personal experiences with Ally Auto’s grace period in the comments section below. You’re also welcome to ask any additional questions that come to mind.

Leave a Reply

Your email address will not be published. Required fields are marked *