If you default on a car what happens?

1. The credit company will call you every day to discuss this issue. It is better that you call them first and tell them what has happened to make you default on your loan.
2. You may try debt consolidation as a way to work out a loan repayment plan that helps with UNSECURED DEBT (to free up more money for your secured loans) but secured loans (car, mortgage) work best if you try to work out a plan directly with the loan company, since if you were paying on time and something happened that prevents you from paying now, you can possibly work out a long term solution to the problem. HOWEVER, don't ever default on it again. You will not have a receptive audience.
3. They may offer you the opportunity to pay only the interest for a few months and add the principal onto the last payment due on the loan
4. If you cannot pay, and cannot work out a temporary solution until you CAN pay, then the auto will be repossessed. DO NOT BELIEVE them if they tell you that they will not report it to the credit agency if they are able to sell the vehicle for what is owed on it. It NEVER happens.
5. You can try to sell the vehicle for what you owe on it but that is very hard to do. It is still worth trying. According to the website below, you should go directly to the owner of title to the car, and negotiate selling it yourself, pay off the loan, and make sure that a negative entry doesn’t end up on your credit record.
6. Here is a site you may want to look into:(http://www.spendonlife.com/asktheexpert/debt_consolidation/the_right_credit.aspx)