{"id":50,"date":"2016-11-23T12:00:00","date_gmt":"2016-11-23T12:00:00","guid":{"rendered":"http:\/\/www.consumerslaw.com\/blog\/what-happens-if-i-default-my-car-loan\/"},"modified":"2023-03-27T17:01:32","modified_gmt":"2023-03-27T21:01:32","slug":"what-happens-if-i-default-my-car-loan","status":"publish","type":"post","link":"https:\/\/www.consumerslaw.com\/blog\/what-happens-if-i-default-my-car-loan\/","title":{"rendered":"What Happens if I Default on my Car Loan?"},"content":{"rendered":"

\"\"An unexpected occurrence like illness or loss of employment can leave you struggling to pay bills on time. If you are unable to pay your car loan on time, the lender may choose to repossess your vehicle.\u00a0<\/span>However, the lender must handle the repossession properly – whether you have fallen behind or not.\u00a0 \u00a0<\/span><\/p>\n

1) Seek a Deferment Before Default\u00a0<\/span><\/h2>\n

Contact your lender before you default to see if a deferment is possible. A deferment will postpone your payments while you catch up with finances. These postponed payments are then applied to the end of the loan.<\/span><\/p>\n

It is important to receive written confirmation from the lender showing this change to the original loan agreement. Since the terms of the loan have, in effect, been extended, the consumer needs to see how the lender has calculated any additional money to be paid at the end to satisfy the loan.<\/span><\/p>\n

A deferment will likely still appear on your credit report, but the effect on your credit will not be as negative as a default.<\/span><\/p>\n

2) Prepare for Repossession<\/span><\/h2>\n

If your loan is in default, understand that the lender has the right to repossess your vehicle.\u00a0<\/span>If you think a repossession is coming:<\/span><\/p>\n