First, the consequences of not being able to repay the car loan
1, being collected.
On the first day when the car loan was overdue, the lender began to collect it. Under normal circumstances, lenders will initially collect money by sending text messages, making phone calls, etc., basically once a day. After a long overdue period, the lender will even contact the borrower's family or friends and continue to call and SMS for collection.
2. High penalty interest
No matter which lending institution the borrower handles the car loan, as long as it is overdue, it will immediately start to generate penalty interest. The penalty interest calculation methods of various lending institutions are different, and the penalty interest of banks is relatively small. However, no matter how much the penalty interest is, it will keep rolling according to the overdue time of the borrower, and the repayment pressure of the borrower will only increase.
3. Credit information is damaged.
After the car loan is overdue, the lender will send the borrower's overdue record to the central bank's credit information system within T+ 1. It only takes three days, and a credit stain will appear on the borrower's credit report. After the credit information is damaged, it will be much more difficult for borrowers to handle any credit business in the future. Almost all financial institutions will refuse to lend if it is overdue for more than 90 days.
4. It was towed away
If the car loan is overdue for more than 60 days, financial institutions may use trailers to deal with the borrower's car. Unless the owner locks the car in the garage or at home, it is difficult for the owner to use the GPS on the car to prevent the collector from being towed away.
2. What should I do if the car loan is not paid back?
1. Extension application
If the borrower only fails to repay the car loan temporarily, he may wish to apply to the bank or lending institution for a loan postponement, and discuss with the lending institution to postpone the repayment for a few days. If there are extenuating circumstances, the lending institution will usually agree to avoid the phenomenon of bad credit caused by overdue repayment.
2. Apply for unsecured loans
If the borrower does not repay the car loan, he can also apply for an unsecured loan to alleviate the financial difficulties, and there is no constraint on the borrower's debt situation. As long as the borrower's credit is good, he can also get a higher loan amount. But not all lending institutions can handle it, and borrowers need to obey the regulations of local institutions.
legal ground
People's Republic of China (PRC) Civil Procedure Law
Article 243rd A legally effective civil judgment or written order must be fulfilled by the parties. If one party refuses to perform, the other party may apply to the people's court for execution, or the judge may transfer it to the person subjected to execution for execution. Mediation and other legal documents that should be executed by the people's court must be fulfilled by the parties. If one party refuses to perform, the other party may apply to the people's court for execution.
Article 245 If one party fails to perform the creditor's rights document which has been given compulsory enforcement effect by the notary office according to law, the other party may apply to the people's court with jurisdiction for enforcement, and the people's court applying for enforcement shall enforce it. If the notarized creditor's rights document is indeed wrong, the people's court shall rule that it will not be executed, and serve the ruling on both parties and the notary office.