How long after a car loan is overdue will the vehicle be remotely locked?
4 Answers
Different banks or lending companies may have varying regulations regarding the overdue period, with some making collection calls after just 10 days of delinquency. Below is relevant information about car loans: 1. Loan Term: The term for an auto consumer loan is typically 1-3 years, with a maximum of 5 years. For used car loans, the term (including extensions) must not exceed 3 years, while dealer auto loans must not exceed 1 year. 2. Types of Car Loans: Personal auto loans are categorized into direct lending, indirect lending, and credit card auto loans. Direct lending usually involves bank loans where the client deals directly with the bank, while indirect lending typically refers to loans facilitated through auto finance companies that connect clients with lenders.
I remember when I bought my car, the salesperson specifically warned me about car loan delinquency issues. Generally, financial companies don't immediately lock the vehicle; they have internal procedures. First comes the gentle collection phase, where they bombard you with calls and messages within about 30 days of delinquency. If there's still no response after 60 days, things get serious because contracts typically include a clause allowing them to activate the pre-installed GPS anti-theft system in the vehicle. I've seen a friend's car get remotely locked, turning into a useless hunk of metal on the roadside. Policies vary significantly between companies—some are more lenient, offering a 90-day grace period. But for car owners with loan-installed GPS, it's best to make payments on time. If you genuinely face difficulties, proactively contact the institution to negotiate.
From a technical perspective, many financed vehicles nowadays come pre-installed with GPS tracking and remote control systems. The duration before triggering the vehicle lock function depends on contract details, with a common threshold being 60-90 days of overdue payment. I've handled similar cases where finance companies typically follow a three-step process: issuing collection warnings within the first 30 days, sending legal notices during the intermediate period, and only activating the remote lock function as a final measure. Once this system locks the engine, the vehicle becomes completely immobilized, requiring full repayment of the overdue amount plus penalties to unlock. A reminder to all vehicle owners: always verify during financing whether such devices are installed and maintain proper repayment records.
A friend in auto finance told me that overdue accounts are categorized into three types: A, B, and C. Type A refers to new overdue accounts within 30 days, where customer service gently reminds them daily. Accounts overdue for more than 60 days fall into Type B, and the company will activate GPS tracking. For Type C, where payments are overdue for 90 days, they remotely lock the vehicle with the press of a button. I advise everyone to carefully review this clause when taking out a loan, as some smaller finance companies may take action as early as 60 days. Locked vehicles must be towed to a designated location, with towing fees alone costing several hundred. The biggest issue is the sudden inability to use the car, which can be highly disruptive, so it's best to set a repayment reminder.
