How Late Can You Be on a Car Payment?

Even one missed payment can be painful, but after that, more severe repercussions may become apparent.

According to Gelinas, if the loan is not repaid, it will typically go into default, which indicates a breach of the contract. Depending on state regulations and the terms of your loan arrangement, this normally occurs after 30 to 90 days of non-payment.

According to Sullivan, there will be a late fee for every payment that is missed.

A 60-day late notice, which the lender will send to the credit bureaus after 60 days, has a more significant negative effect on credit ratings and credit scores than a 30-day late notice. Also, the likelihood of repossession and legal action rises after the second missing payment.

Financial advisors view the 60-day event as the turning point because at that point, the harm becomes really large and recovery alternatives are severely constrained, according to Sullivan. Even clients with high credit may now have trouble refinancing their loans with other lenders or locating alternative sources of funding.
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