BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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they repossess (take back) your car along w/ possible fines & lowering your credit score
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you just incur late fees until you can pay
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the company sues you
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Detailed explanation-1: -If you keep defaulting on your car EMIs, your lender will take possession of your car. Also, your credit score will reduce and your credit report will have negative issues recorded. When you avail of a loan or a credit card in the future, your credit score will be checked.
Detailed explanation-2: -If you do not repay your loan, the lender can take you to court. The court will then require that you pay back the amount in full or face other penalties such as wage garnishment or seizure of assets. The lender may also report the debt to credit bureaus and send debt collectors after you if payments become overdue.
Detailed explanation-3: -Defaulting on a loan is a civil charge and you can be charged with a criminal offense for that. So, it means that a genuine loan defaulter cannot go to jail. If you are a genuine loan defaulter, then you can negotiate with the lender.
Detailed explanation-4: -Ultimately, if you are in no capacity to repay the loan, the loan provider would seize your car. Even then, the lender might grant a short period to reclaim your car. However, if you are still unable to make the payment, the bank/loan provider would be forced to sell your car at an auction to recover the loan amount.