The failure to repay the car loan will first affect the lender's credit information, and the lending institution will report the overdue records to the personal credit information system, which is not conducive to the lender's future credit loan activities.

Secondly, the lending institution will contact the lender by telephone to urge the lender to repay the loan as soon as possible, so as to avoid further expansion of overdue influence. At the same time, it will also calculate the penalty interest of the lender within the overdue period, so that the lender can feel the pressure of penalty interest and pay off the overdue loan as soon as possible.

If the lender maliciously fails to repay the loan, the lending institution can sue the lender and dispose of the mortgaged vehicle according to the regulations in order to ensure its own rights and interests. At this point, the lender may have to bear relatively large economic losses.

Real lending institutions will only adopt compliance collection methods within the scope of compliance when collecting arrears, and generally will not contact the lender's family or friends at home or by telephone. Of course, even if the collection method of the lending institution is moderate, the lender should pay off the loan in time, and the cost of overdue is very high. Don't try easily.

What will happen if you buy a car loan?

Speaking of buying a car, for most people, it is a common choice to buy a car by loan, because a large sum of money is needed in the short term, and the pressure is relatively high considering the needs of daily life, but the loan for buying a car also needs to be repaid on time in the later period. So what happens when you borrow money to buy a car and don't repay the loan?

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2. Will be collected by the lending institution: No matter whether it is borrowing from a bank or an auto financing company, as long as the loan cannot be repaid on time, the lending institution will definitely take certain collection measures in order to recover the loan, such as calling and texting to remind the borrower to take the initiative to repay. If the loan vehicle is equipped with GPS, and the overdue time is too long, the lending institution may tow the vehicle away according to law until the borrower settles the loan.

3. Will be sued by the lending institution: If the borrower fails to repay the loan and the car is not equipped with GPS, the lending institution cannot tow the car according to law. After the agreed repayment period, the lending institution may bring a lawsuit to the court and demand the borrower to repay. If the borrower is still unable to repay the loan after compulsory execution by the court, the car can be auctioned to compensate the loss of the lending institution. The owner spent money and didn't take the car away at last, which is equivalent to wasting a lot of money and will become the executor who broke his promise.

I believe that my friend borrowed money to buy a car and didn't pay back the loan. Since you have borrowed money, in order to be able to drive safely, you must strive to repay it on time as soon as possible. When they are unable to repay the loan, they should also actively negotiate with the bank and not evade it, so as not to bring greater negative impact.

What are the consequences of overdue car loans?

Overdue car loans will generate corresponding penalty interest and late fees, and will also be charged by lending institutions. When handling other loan business, you can't enjoy any preferential measures, which will affect your personal credit information and apply for other loans. If the borrower fails to repay the loan for three consecutive months, it may be sued by the lending institution and the property may be enforced by the people's court.

Extended data:

Consequences of not paying back the car loan:

1. Pay high penalty interest and liquidated damages. The default interest is generally 65438+ 0.5-2 times of your loan interest rate, and the penalty is generally 5% of the unpaid amount;

2. There are bad records on personal credit information, and overdue car loans will definitely be reported to the credit information.

3. Accept all kinds of collection from lending institutions, including telephone calls, text messages, home visits, etc. , sometimes call your contact.

If you are sued, the lending institution will take you to court if it finds that its collection method is useless. If the other party wins the case, you need to repay all outstanding principal, liquidated damages, and interest and penalty stipulated by law.

What are the consequences of car loans?

1. What are the consequences of car loans?

Car loans will also affect personal credit records, resulting in overdue fees and interest. According to China's credit-related regulations, bad credit records will only appear if the loan or credit card is overdue for more than 3 times or more than 90 days, which will be automatically controlled by the system. If there is no money for only one month, the principal and interest of these two months will be paid off before the interest settlement date of next month. However, during the period from the interest settlement date of this month to the next interest settlement date, unpaid interest will generate penalty interest. According to the relevant regulations of China's credit investigation, bad records will only be generated if it is overdue for more than 90 days, and the overdue for more than 90 days will be automatically controlled by the system. If you have no money for only one month, you don't need to apply. Just pay off the interest for these two months before the interest settlement date of next month. However, during the period from the interest settlement date of this month to the next interest settlement date, your unpaid interest will generate penalty interest.

Loan maturity date:

1 and 1 month, default interest will be incurred;

2, 1 month (more than 30 years), the bank will have SMS notification;

3. After more than 3 months (90 days), the bank will call or collect it at home;

4. The bank will bring a lawsuit to the court for more than 6 months, and the court summons will be sent to the borrower's home. On the day of the court session, regardless of whether the borrower appears in court, the court will freeze the collateral originally mortgaged by the borrower to the bank and then auction it. The proceeds from the collateral auction will be used for repayment. If the auction proceeds are greater than the arrears, (the amount that the borrower needs to pay = principal interest? Liquidated damages, late fees, prosecution fees? Attorney fees, etc. ), then the excess will be returned to the borrower. However, there is little extra money.

Second, the loan matters needing attention

1. Don't use the provident fund before applying for a loan. If the borrower takes the balance of the provident fund to pay the house payment before the loan, the balance of the provident fund in your provident fund account will be zero, and your provident fund loan amount will be zero, which means you will not apply for a provident fund loan.

2. Don't repay the loan in advance in the first year. According to the relevant provisions of the provident fund loan, part of the prepayment should be made one year after the repayment, and the amount you return should exceed the repayment amount of six months.

Don't lose the loan contract and IOU. To apply for a mortgage loan, the loan contract signed between the bank and you and the iou are all important legal documents. As the loan term can be as long as 30 years, as a borrower, you should take good care of your contracts and IOUs.

Don't forget to find the bank around you if you have difficulty in repaying the loan. Don't insist on it yourself when your solvency drops during the loan period and it is difficult to repay. ICBC customers can apply to ICBC for extending the loan term. According to our investigation, if there is no default in loan principal and interest, we will accept your application for extension.

5. Don't forget to inform when renting a house after the loan. When renting a mortgaged house during the loan period, the lessee must be informed of the mortgage facts in writing.

6. Don't forget to cancel the mortgage after the loan is paid off. When you have paid off all the loan principal and interest, you can go to the district or county real estate trading center where the real estate is located to cancel the mortgage with the bank's loan settlement certificate and other real estate rights certificates of the mortgaged real estate.

In a word, the most serious legal consequence of not paying back the car loan is that the legal property under one's name will be enforced by the court, and the car will be registered as mortgage if there is a loan. Therefore, if you don't pay back the car loan, you will end up with no money and no car. I have left a bad credit record in my life, and I don't think I can get a loan in the future, so young people sometimes have to consider the consequences.