May 18th, 2010 
Tim asked:
I want to know what are the consequences if I stop making payments on a car…I understand that they will report it to three credit bureaus. What else can they do? Is it illegal to stop making car payments?
Phyllis
I want to know what are the consequences if I stop making payments on a car…I understand that they will report it to three credit bureaus. What else can they do? Is it illegal to stop making car payments?
Phyllis
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Marc
No, it’s not illegal. It will , as you mention ruin your credit, and they will repossess the car. Watch the film “Repo Man” with Emilio Estavez.
Allan
Awful for your credit, I know from experience. And they will find you and take your car from you. Then what will you drive? You will still eventually have to give them money and then you will have that hanging over your head for a very long time. You may lose a few years off your life due to stress too. If you can’t make the payments, I would try selling the car or refinancing.
Angel
No, but if you want your credit ruined for seven years.
Jay
It will mess your credit bad! Additionally, they will (after 3 months) repossess your car and anything in it, and you will legally still be responsible for paying the car off. If you don’t want the car anymore, see what the dealer you bought it from can do for you, or call the bank and explain the situation to see what options they can offer. It’s better to deal with the situation responsibly than to just quit making payments.
Jean
Watch Repo on TruTv and you will see what happens
Lucille
You will end up paying back your whole loan amount even after the car is sold at auction.
Kenneth
It’s not illegal, but the law is in their favor. Here’s what they can do:
Repossess the vehicle and add the costs of doing so to your balance. Having a repossession on your credit will severely limit your ability to obtain credit for the next 7 years.
They will sell the vehicle for a fraction of its actual value, then subtract that sales amount from your outstanding loan balance and send you a letter demanding that you pay the balance owed within 30 days.
If you do not pay, they will sue you and obtain a judgment giving them the right to garnish your wages to collect the money you owe them.
The bottom line is you signed a contract promising to pay, in return you are allowed to drive the vehicle while you are making payments on it. The honorable thing to do is make those payments as you promised to.