Will the car be locked and unable to start if the auto loan is overdue?
1 Answers
If the auto loan is overdue, some lending companies may remotely control the vehicle through GPS, locking it and cutting off power or fuel supply. 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, settle the overdue payment as soon as possible, and then request the lending company to unlock the vehicle. The consequences of an overdue auto loan are as follows: Remote vehicle locking: After the auto loan becomes overdue, the bank will first call to remind the borrower. 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 subsequently auction it, which could also result in a negative credit record for the buyer. The bank may sue the borrower: The bank will legally demand repayment of the overdue loan from the borrower. In accordance with the loan agreement and guarantee agreement (mortgage or pledge agreement), the lending bank may file a lawsuit in court, and the court may take measures such as property preservation. This includes freezing all bank deposits in the borrower's and guarantor's accounts and seizing the borrower's mortgaged or pledged assets. Once a judgment is issued, the court will legally enforce measures (such as deducting deposits or auctioning mortgaged/pledged assets) to recover the bank's loan losses. These measures specifically include: the principal amount of the loan, loan interest, overdue interest, and penalties, as well as all litigation costs incurred and any related expenses during the liquidation of the mortgaged (or pledged) assets.
