What is a Car Loan Maturity Date?
The maturity date of a car loan is the date when the borrower of the loan pays back the loan installments in full according to the schedule. However, when a car loan reaches its maturity date, one cannot say that it’s paid back fully. There are situations when some amount is remaining when the auto title loan reaches its maturity date.
Remaining Amount after Car Loan Maturity Date
If for any reason, you are unable to make the payment during the loan period, the car title loan lender will add a fee to the balance amount of the loan. Some lenders have an offer during the holiday season to skip the payment. However, there is a fee to benefit from this offer, which will be added to the remaining balance.
In case you skip or miss a payment, the due date goes to the coming month, while the interest continues to accumulate. If you have availed of such offers, the remaining amount on the maturity date will consist of skipped payments plus interest.
Paying off Loan after Maturity Date
If any amount is remaining on a car title loan’s maturity date, you should pay it back. Your title loan lender may ask for full payment or may show a little leniency and negotiate. If you have not skipped any payments, the amount would be negligible.
If the loan maturity date has passed and a significant amount is remaining, you can ask your lender if they allow you to pay it back in installments equivalent to the number of your monthly payments. Until and unless some balance is remaining, you may not have the lien of your vehicle.
Payment Collection of Remaining Amount
If you own a balance past the maturity date, your lender will charge fees on the payments you missed. And the interest will continue to accumulate on the remaining amount.
Title Loan Repossession
If you have any remaining amount for the loan and cannot pay it back, the title loan lender has the right to repossess your vehicle. However, the lenders try to avoid title loan repossession because it can hurt both parties.
Even if the situation becomes unfavorable, your lender will notify you and give you a chance to pay off the loan. In case you are unable to pay, your lender will repossess your car and sell it at the auction to pay the loan.
We at Advantage Finance LLC pray that never a situation like this comes to you, and you can always repay the car loan before its maturity date. If you have any questions, feel free to call us at (281) 410-5337 .