Why can't the car start when the car loan is overdue?
1 Answers
If the car loan is overdue, some lending companies may remotely control the vehicle through GPS to lock it, resulting in power and fuel cutoffs. This type of GPS interferes with the key signal via electromagnetic signals. Once the vehicle is locked in this manner, it cannot be started. The only solution is to negotiate with the lending company, repay the overdue amount as soon as possible, and then request the lending company to unlock the vehicle. The consequences of an overdue car loan are as follows: 1. Remote vehicle locking: After the car loan becomes overdue, the bank will first remind the borrower via phone. If the borrower still fails to repay the overdue amount, the bank may proceed with remote vehicle locking. The worst-case scenario is that the bank may repossess the car and auction it, and the buyer may also receive a negative credit record. 2. The bank may sue the borrower: The bank will legally demand repayment of the overdue loan from the borrower. Following the terms of the loan agreement and the guarantee agreement (mortgage or pledge agreement), the bank may file a lawsuit in court, and the court may take measures such as property preservation, including freezing all bank deposits of the borrower and the loan guarantor, as well as seizing the borrower's mortgaged or pledged property. Once the judgment is issued, the court will enforce the repayment by legally seizing assets (such as deducting deposits or auctioning mortgaged or pledged property) to cover the bank's loan losses. This includes the loan principal, loan interest, overdue interest, and penalties, as well as all litigation costs incurred and related expenses during the disposal or realization of the mortgaged (pledged) property.
