What is a Car Loan Maturity Date?

(Last Updated On: October 1, 2022)

A car loan maturity date is the day on which the last payment of a car loan is due. It’s important to know when your car loan matures because, if you don’t pay it off by then, you may be faced with some serious repercussions—including having your car repossessed.

What Happens if I Don’t Pay Off My Car Loan by the Maturity Date?

If you don’t pay off your car loan by the maturity date, you could be facing some serious consequences. For one thing, your car could be repossessed. In addition, you may damage your credit score, which could make it difficult to get approved for future loans—including mortgages and personal loans. And, if your car is repossessed, you’ll still be responsible for any money you owe on the loan—even though you no longer have the car.

Another consequence of not paying off your car loan by the maturity date is that you may have to pay what’s known as a “deferred payment penalty.” This is a fee that lenders charge when payments are not made on time. The amount of the fee will vary depending on the lender, but it can be as much as 5% of the total amount owed on the loan.

Finally, if you don’t pay off your car loan by the maturity date, you may find yourself “upside down” on your loan meaning you owe more money than the car is worth. This can happen if your car depreciates faster than you’re paying down the principal on your loan. If this happens, and you need to sell or trade-in your car, you’ll end up having to pay out of pocket to cover the difference.


As you can see, it’s important to pay off your car loan by the maturity date. If you don’t, you could face some serious consequences—including having your car repossessed or damaging your credit score. So be sure to keep up with your payments and avoid these potential pitfalls!

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