However, because loans overdue is not in breach of contract, it needs to pay liquidated damages, or it may be a penalty interest. At this time, the repayment pressure is relatively high. If you give up the car and hand it over to the bank for auction, the price of the car will usually be lower.

In order to reduce the loss as much as possible, the owner can find an individual who is interested in buying a car or a used car dealer, let him repay the remaining car loan in advance, then go to the bank to bring back the motor vehicle registration certificate, vehicle certificate, car purchase contract and other materials, and then go to the vehicle management office to learn about the mortgage and transfer procedures.

Possible consequences of not paying back the car loan:

If the repayment is not made for three consecutive months, and the overdue nature is bad, it will be submitted to the court for compulsory auction and other assets under its name will be frozen. That is to say, if it is overdue for 1-3 months, the car loan agency or bank will call for payment. If it is overdue for more than three months, the defendant may go to court and have the right to tow the car for auction, repay the car loan with the proceeds from the auction, and restrict other businesses. And overdue records will also be entered into the credit information system, leaving a stain.