An auto loan deferment could help you to avoid a negative mark on your credit report and other ramifications of late payments. If Volkswagen Credit approves your loan deferment, all scheduled payments for the approved time period can be skipped. Your loan term will be extended by the length of the deferment period, and you will make any skipped payments at that time. Interest charges will accrue until the loan is paid in full, so a deferment can increase the total amount of interest charged on your loan.