The overdue car loan will have the following consequences:
1. If the car loan is overdue, the consequences will be that the personal credit record will be bad, and it will be difficult to apply for a loan again in the future.
2. overdue car loans also have penalty interest, and car loans are not like mortgages, which are usually issued by banks. besides banks, car loans include auto finance companies and loan companies, and the penalty interest of these lending institutions is usually much higher than that of banks.
3. You may be sued by the other party.
4. The car may be towed away by the bank and auctioned off to repay the loan. In addition, other collateral may also be auctioned to repay the loan.
The consequences of the vehicle loans overdue for half a month are quite serious. It is best for users to pay back the arrears on time, so as to maintain their personal credit and pay off the arrears as soon as possible after the deadline.
Legal basis:
Article 42 of the Commercial Bank Law
The borrower shall repay the principal and interest of the loan on schedule.
if the borrower fails to repay the secured loan at maturity, the commercial bank shall have the right to demand the guarantor to repay the loan principal and interest or to get priority compensation for the collateral. Real estate or equity acquired by a commercial bank due to the exercise of mortgage or pledge shall be punished within two years from the date of acquisition.
if the borrower fails to repay the credit loan at maturity, it shall bear the responsibilities as agreed in the contract.