Short answer: Not usually by just asking, because most car loans are fixed contracts. There are two main routes. If you're struggling, you can ask your lender for a hardship variation, which may include a longer term. Otherwise you can refinance the balance into a new loan over a longer period. Both lower the repayment but usually increase the total interest you pay.
Option 1: a hardship variation
If illness, job loss, a separation or another change has made repayments hard, you can ask your lender for help. Under the National Credit Code, the lender must consider your request. Options can include pausing or reducing repayments for a while, or extending the term. Ask early, before you fall behind.
A hardship arrangement may be recorded on your credit report as financial hardship information. It stays for 12 months and doesn't affect your credit score, although lenders can see it. Moneysmart explains the process for asking for hardship help.
Option 2: refinancing over a longer term
A new lender pays out your existing loan and you start a fresh one, possibly with a different rate and term. This isn't limited to hardship, but it's a new credit application, so your income, expenses, credit file and the car's age and value are all assessed again. Check the payout figure and any early termination fee on your current loan first.
What a longer term really costs
Example only: with $20,000 still owing at 10% p.a., paying it off over 3 years costs about $645 a month and around $3,232 in interest. Stretching it to 5 years drops the repayment to about $425 a month, but interest rises to roughly $5,496. That's around $2,264 more for the breathing room.
| Pros | Cons | |
|---|---|---|
| Longer term | Lower repayment, more room in the budget | More total interest, and you're paying longer |
| Hardship variation | Stays with the same lender, and you don't need a new approval | May be temporary, and noted on your file for 12 months |
| Refinance | May get a better rate or remove a balloon | New credit check, fees, possible break costs |
Risks to watch
- Negative equity. Cars lose value. A longer loan raises the chance you'll owe more than the car is worth if you need to sell.
- Car age. Some lenders limit how old the car can be at the end of the loan, which caps how far you can extend.
- Balloons. Adding a balloon to cut repayments pushes the problem to the end of the loan rather than solving it.
Which route fits?
If the problem is short-term, talk to your lender about hardship first. If your budget has changed for good, or your current rate is high, refinancing may be worth a look. If you're in dispute with your lender, AFCA can help, and free financial counselling is available on 1800 007 007.
Repayments feeling tight? Tell us about your situation in about 60 seconds and a licensed broker will call you. No credit check to enquire.
Related guides
- Lowering your rate by refinancing
- Getting a car loan after a hardship plan
- Early termination fees explained
General information only. This isn't financial advice. Finance the Ride is a referral service and doesn't hold an Australian Credit Licence. Last reviewed September 2026.
