What happens if you default on your car lease?

Answer by  SubhashChander (1773)

If someone defaults on the repayments of the car taken on lease due to genuine financial problem, then it is better to inform the bank in writing about the same. Ask them to reschedule the lease agreements so as to give a time gap of about six months more without the repayment. For this, they may charge more interest.

Answer by  technogeek (6640)

If it is a lease, read your agreement to find out if there is a penalty for surrendering the automobile early. If there is, then there is your answer.

Answer by  Siri (81)

It will have a negative effect on your credit rating. The financing company may take your car, put it in the auction and will ask for the remaining amount

Answer by  Roland27 (16334)

If you default on your car lease payment they are going to take your car away. You can see if they will give you a car that has a lower payment that you can afford.