Car loan

A loan taken out to buy a new or used vehicle can sometimes be difficult to repay

A car loan is a loan taken out with a financial institution or other lender to finance the purchase of a vehicle. It is often a long-term financial commitment, with regular monthly repayments. Sometimes, however, financial difficulties arise, making repayment of the loan problematic.

When a car loan is no longer repaid, there are several possible consequences. Firstly, the lending institution may initiate proceedings to recover the sums due. This may include legal action and the possibility of seizing the vehicle financed.

Seizure of the vehicle will depend on a number of factors, but above all on the type of financing (rental, leasing, chattel mortgage, etc.). In some cases, the financial institution may also require an endorser to repay the loan in the event of default.

In addition to these consequences, defaulting on a car loan can also have an impact on your credit rating, which can make it difficult to obtain new loans or credit cards, and can also lead to higher interest rates.

It is important to note that there are differences between a second or third chance credit loan and a regular car loan. The former is generally intended for people with a difficult credit history, while the latter is intended for borrowers with a better credit rating.

If you are having difficulty repaying your car loan and are worried about the financial consequences, we encourage you to make an appointment with one of our advisers. A meeting with our team will enable you to assess the various options available to you and find the best solution for regaining financial stability.