If your concern is that the car may be repossessed before you pay off the balance, if you make additional monthly payments as opposed to paying a lump sum, then you have cause to find the money to pay your balance. Similarly if you are concerned about your credit score it makes sense to pay off arrears earlier as opposed to later. But if you pay the remaining balance of your loan including interest and penalties over two or three months instead of paying in a lump sum, the lender is okay with that even though it would prefer a lump sum and will not attempt repossession, and you don't mind the lateness being reflected on your credit report, then you can pay on a slower time table even if the lender prefers immediate payment in full.

