What Is the Grace Period for Car Loans in Nevada?

Nevada state laws do not regulate grace periods for car loans. Typically, a grace period entitles the borrower to be 10 to 15 days late making a payment without having to pay a late fee. The availability of a grace period on a car loan in Nevada is totally dependent on the lender's willingness to offer it to the borrower.

Contract

Your contract with the lender identifies your grace period if one is available. The federal Truth in Lending Act ensures that your lender provides the complete details of the loan in a disclosure statement. Required information includes any applicable grace period, the interest rate of the loan and the lender's method of calculating it, late fees and loan processing charges. The lender must explain its repossession policy in the disclosure.

No Grace Period Clause

If your contract with the lender does not specify that you have one, you do not have a grace period and the lender can repossess your car if your loan enters default. Nevada law provides an exception to this if your lender has habitually accepted late payments from you. The lender cannot stop processing late payments on your account without sending you a notice stating that it will no longer accept late payments.

Consequences of Late Payments

A grace period allows you to pay your car loan late. However, it does not extend the time that you have to make a payment. If your lender provides a grace period, it is a courtesy to assist the borrower when he experiences a temporary setback. However, if you do not make your payment within the grace period, your lender can consider you to be in default on your loan. Your lender will report payments made more than 30 days after the due date to the credit bureaus. Negative reports will lower your credit score making it more difficult to receive future loans with a low interest rate.

Title Loans

Just as with other loans, Nevada law does not prohibit a lender from offering a grace period on a title loan. The state defines title loans as any loan that requires the borrower to submit the title of the vehicle as security for a loan with an annual percentage rate that is higher than 35 percent. While Nevada has no cap on the interest rates charged by title lenders, the lender must provide you with written notice at least 30 days before repossessing your car.