What happens if i don’t pay my car finance in the UK
If you’re behind on your car finance payments, you may be wondering what will happen if you don’t catch up. The truth is, there are a lot of consequences that can result from not paying your car finance. We’ll go over some of the most common ones in this blog post. First of all, you could end up with a low credit score, which will make it difficult to get approved for car finance deals for bad credit. You may also have to pay late fees and penalties, which can add up quickly. In addition, your car may be repossessed if you don’t catch up on your payments.
If you don’t make a payment on your car finance, the lender will likely take action to recover the money owed
If your payments become overdue, the first thing most lenders will do is contact you by phone or letter with reminders and warnings. This step is intended to pressure you into making a payment and prevent further action from being taken against you.
If these reminders are unsuccessful, the lender may choose to hire a debt collection agency or solicitors in order to recover what you owe on the car loan. They could also take court action against you if they believe their money is not likely to be recovered otherwise.
In addition, defaulting on your car finance payments will severely damage your credit score. Bad credit car finance lenders will be less likely to loan money to you in the future, and other lenders may be unwilling to offer you any form of financing.
You can avoid these consequences by taking the necessary steps to pay off your car finance on time and in full each month. If for any reason you are unable to make the payment, contact your lender immediately and explain the situation.
This could involve seizing your car and selling it to repay the debt
In some cases, if you’re able to come to an agreement with the lender and make regular payments, they may consider letting you keep your car. Bad credit car finance can be difficult to secure, so it’s important that you understand the possible consequences of not paying your car finance.
If you don’t pay your monthly instalments or miss a payment altogether, the finance company may take steps to recover their money by taking legal action against you. This could involve a court order being granted allowing them to seize and sell your vehicle in order to repay the debt. Although this is an extreme measure for non-payment of a car loan, it is one of the options available to lenders as a last resort.
You may also have to pay additional fees and interest on the amount you owe
Bad credit car finance could also be a factor if you don’t keep up with payments. Defaulting on your car finance loan could damage your credit score and make it hard to get approved for future loans, including mortgages or even mobile phone contracts.
Not paying your car finance can also lead to legal action taken against you. If your lender decides not to pursue legal action right away, they may still attempt to collect the debt by sending letters and calling you at home or work. Further, they may employ the services of a debt collection agency who will pressure you into paying the amount due.