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What happens if I stop paying my loan and let my car get repossessed?
I don't have money for my car payments anymore, and now the lender is threatening to have the car repossessed. What happens to me if I stop paying my loan and the car gets taken?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“A lot of different things can happen. You’ll have repo men waiting to pounce on your car. The lender will continue to hound you. But worst of all, your credit score will be severely damaged for the next seven years.
While your credit may not seem important now, think about buying a house or another car in the future. You won’t be able to purchase either.
If the car gets repossessed, the lender will often sell it at auction for far less than the actual value, and you’ll be on the hook for the remainder.
If you really can’t pay your car loan by any means, you should call your lender and work out a date to turn the vehicle in. Give yourself time to get your affairs in order or set up a new form of transportation. That’s probably your best game plan.”
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- Gregory R.
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