When handling a car loan, both parties will sign a loan contract, and there are ways to deal with non-repayment in the loan contract. To buy a car loan, the owner needs to repay the loan on time every month. Loans overdue, in the first month, he will call for repayment, and he will be equipped with a better model. He will also lock the car through the internet of cars. If loans overdue doesn't pay in three months, the lender will take the car away through GPS positioning. After the vehicle is taken away by the lender, it will be auctioned, which is equivalent to selling a used car and then overdue the loan. The amount of vehicles sold is higher than the loan amount. At this time, the fees higher than the amount of orange lead will be refunded, and of course there will be overdue fines. If the cost of selling the car is not enough to pay back the car loan, the owner still needs to pay back the remaining car loan fee.

What are the consequences of overdue bank car loans?

1. Affect personal credit information

Bank collection is generally more formal, and the most serious consequence is that it will affect credit. In the future, it will be very difficult to borrow money to buy a house, buy a car and apply for a credit card. We can only seek the help of private loans, so the interest will be much higher.

2. Late payment fee

As loans overdue is in breach of contract, it will be fined on a daily basis, and the specific amount of fines varies from bank to bank. About 5% of the minimum repayment amount.

3. Take over the car and sue

Generally, the overdue time is more than half a year to more than one year, and it is possible to be sued by the bank. On the day of the court session, regardless of whether the borrower appears in court, the court will freeze the car that the borrower originally mortgaged to the bank and then auction it. The proceeds from the collateral auction will be used for repayment.

How long is the car loan overdue?

1. General bank loans have a grace period. This period does not mean that there will be no impact, which will lead to late fees and affect credit. However, it will not be towed away or collected at home. At most, just send a text message or call to remind you. You can communicate with the collection staff in time to see if you can repay in installments or postpone it for a period of time.

2. The risk control of each loan mechanism is different, and the punishment measures will be different. If you apply for a car loan in a guarantee company, you will usually take measures in about one month. In serious cases, you can tow the car away, and you must pay off the debt to get it back.