You may have noticed that now, in order to buy a car, there is widespread acceptance of instalments. Occasionally, however, some may experience an awkward situation of late payment. What, then, could be the impact of late payment? Let's get to the bottom of this。

What are the consequences of the delay in the payment of the car

First, as a borrower, you need to be aware of the negative impact that late payments can have on your credit records. Credit records play a decisive role in judging individual credit levels. In the event of similar irregularities in your credit records, future loans, credit card applications or rentals may be blocked. Second, in the case of car instalments, the ownership of the vehicle may even change once it is overdue. This means that the lender has the right to take back the car or to dispose of it by legal means, and that the result would be the loss of money and time. In addition, if more than three delays, your name will be included in the bad record of the Central Bank ' s personal letter system。

On the other hand, for lending institutions, i.e. banks, late payments can trigger capital pressure. Failure to recover losses due to delays will challenge the risk tolerance of banks. Moreover, with regard to the relationship between the bank and the borrower, the late payment would be pushed to the point of the knife. In the event of a continuing situation of overdue payments, the bank would use legal means to collect funds to protect its legal rights。

You might wonder if the instalments can be repaid in advance? The answer is yes. When you intend to repay the loan in advance, you need to submit a written request to the bank 7 to 30 days in advance, with an agreed date for repayment. On an agreed date, you will have to go to the bank office with your identity card and loan contract to complete the necessary formalities as required by the bank staff. Once the dues are deposited into the corresponding account, the bank will automatically withhold them。