1. Default interest stipulated in the contract: according to the agreement in the car loan contract, default interest is required for overdue repayment. Penalty interest is the interest calculated according to a certain proportion, which is usually higher than the normal interest rate.
2. Credit record is damaged: overdue car loans will negatively affect the borrower's credit record. This will leave an overdue record in the personal credit report, which will have a negative impact on the borrower's credit evaluation and loan application in the future.
3. collection action: after the borrower is overdue, the bank or financial institution will take collection actions, such as telephone collection and door-to-door collection. This process may bring unnecessary troubles and embarrassment and interfere with the normal life of borrowers.
4. Vehicle repossessed: According to the car loan contract, in case of serious overdue or long-term non-repayment, financial institutions have the right to choose to repossess the mortgaged vehicle. After recovery, the vehicle will be auctioned or otherwise realized to repay the loan.
to sum up, overdue car loan will lead to the borrower's penalty interest, credit deterioration, collection action and possible loss of vehicles. Therefore, it is suggested that the borrower should repay the loan on time in strict accordance with the contract to avoid adverse penalties.
Extended information:
According to the relevant laws and regulations of China, financial institutions must abide by the contractual agreement and relevant financial supervision policies when implementing the penalty for overdue car loans. Various financial institutions may formulate different punishment measures according to their own conditions, but generally they will follow the above basic principles. In addition, in order to avoid overdue car loans, borrowers should carefully calculate their repayment ability when applying for car loans, and fully understand the relevant contract terms and loan risks.
the above is a general answer based on the common situation of overdue car loans, and the specific punishment measures need to be decided according to the contract and relevant laws and regulations. If you have a specific overdue situation, it is recommended to consult a professional lawyer or financial institution for relevant legal and financial advice.