Car loans are appealing with enticing interest rates and low advertised payments. Auto-loan contracts are very hard to break and can be hard to pay for.
It is very difficult to get out of a vehicle contract when a major financial issue occurs whether it is a job loss, divorce or other life event. The situation is made more complex as people require their vehicles for work and as provincial laws vary around legal ramifications after repossession.
Repossession has a large impact on both credit and lifestyle. Before making a decision to stop paying, allowing a voluntary repossession or not paying as agreed, it is wise to know what the long term impact will be. Seek advice from an independent credit counselling agency before taking action.