What happens if I default on my used car loan for a taxi?

Defaulting on any auto loan leads to serious financial consequences, and taxi loans are no exception. Default usually occurs when you miss multiple payments.

• The most immediate impact is that the financial institution can initiate repossession of the taxi after a certain period of non-payment. They don't want a non-performing loan on their books.
• Once you default, repossession agents may be sent to physically retrieve the vehicle from your home.
• In addition to losing the taxi asset itself, your credit score will take a considerable negative hit that can persist for years. Defaulting leads to severe credit reporting damages.
• You will still owe the outstanding loan balance to the lender even after they repossess the car.
• Any accumulated fees from late payments, failed payments, bounced checks and repossession fees get added to your past-due balance - increasing how much you owe.