What happens when you dont pay your monthly car payment in full?

1. Late payment fee: Most lenders charge a late payment fee if your payment is received after the due date. This fee can range from $25 to $50, and it can be added to your outstanding balance.

2. Increased interest rate: If you are consistently late with your payments, your lender may increase your interest rate. This means that you will pay more interest on the money you borrowed, which can add hundreds or even thousands of dollars to the total cost of your loan.

3. Repossession: If you default on your loan (meaning that you stop making payments altogether), your lender can repossess your car. This means that the lender will take possession of your car and sell it to satisfy the debt.

In addition to these financial consequences, defaulting on your car loan can also damage your credit score. This can make it difficult to obtain future credit, such as a mortgage or a credit card.

If you are having trouble making your car payments, it is important to contact your lender as soon as possible. There may be options available to help you avoid default, such as a payment extension or a loan modification.