What happens if I default on my loan?

If a borrower defaults on a loan from Premiere Auto Credit, several serious consequences may follow. Defaulting on an auto loan typically occurs when the borrower fails to make the required payments on time, and the loan remains unpaid for an extended period, usually 30 days or more. Once a loan is in default, the lender has certain rights and options to address the situation. Initially, the lender may contact the borrower to discuss the missed payments and seek a resolution, such as renegotiation or a repayment plan. If the borrower continues to ignore the payments, the lender may report the late payments to credit bureaus, which can negatively impact the borrower's credit score. A lower credit score can make it difficult to obtain future credit or loans. In most cases, the lender may also have the right to repossess the vehicle financed by the loan. This means that the lender can physically take back the car to recover their losses. Repossession can be a distressing experience and disrupt the borrower's daily life. Furthermore, the borrower may still owe money even after repossession if the proceeds from the sale of the vehicle do not cover the remaining loan balance. This situation is often referred to as a deficiency balance, which can lead to further collection efforts. For those seeking specific information regarding default terms or repercussions, it may be helpful to look at the current policies on Premiere Auto Credit's website.