Will Yixin Auto Loan Repossess the Car for Non-Payment?
2 Answers
Yixin Auto Loan will repossess the car for non-payment, and there will be additional fees. Auto Finance Company Loan: Compared to bank auto loans, auto finance company loans have lower application thresholds and simpler procedures. Borrowers need to provide copies of their ID card, household registration booklet, marriage certificate, property ownership certificate, as well as proof of residence and income. Auto finance company loans generally do not require local household registration or collateral and can usually be processed at 4S dealerships. Bank Auto Loan: Compared to auto finance company loans and credit card installment car purchase loans, bank auto loans offer borrowers more flexibility. Borrowers can apply for bank auto loans regardless of the brand or model they wish to purchase, and the repayment methods are also more flexible. Credit Card Installment Car Purchase: Unlike auto finance company loans or bank auto loans, credit card installment car purchases do not require interest payments. However, borrowers need to pay a certain installment handling fee when using a credit card to purchase a car.
I almost had my car repossessed before due to cash flow issues, but managed to negotiate a solution with the lender in time. If you default on your auto loan, the financing company has the right to repossess your vehicle since it serves as collateral. They typically send SMS reminders first - if payments are overdue for more than three months, they may dispatch someone to tow it away. That's exactly what happened to my neighbor Lao Zhang's car - he ended up paying not only late fees but also towing and impound charges. My advice is to proactively contact them when you receive payment reminders. You can request deferment or installment plans, which is far better than having your car seized. Remember to review the default terms in your contract, as different financial institutions may have varying procedures.
