1. Repossession: The lender can repossess the car. This means they will take the car back and sell it to recoup the money they are owed. Repossession can damage your credit score and make it difficult to obtain future loans.
2. Late Fees and Interest: You may be charged late fees and interest on the missed payments. These fees can add up quickly and make it even more difficult to catch up on your payments.
3. Legal Action: The lender may take legal action against you to collect the debt. This could include a lawsuit or a judgment against you. A judgment can make it difficult to own property, get a job, or open a bank account.
4. Credit Score Damage: Missing payments on your car loan will damage your credit score. This can make it difficult to obtain future loans, such as a mortgage or car loan.
5. Difficulty Getting a New Car: If your car is repossessed, you will have difficulty getting a new car. Lenders will be less likely to lend you money if you have a history of repossession.
