1. Car loan defaults happen when a borrower fails to make the agreed payments to their respective lenders. If you are not able to pay your monthly EMIs, it is better to inform your lender and explain the reason for the delay in payment. This is because charges are levied on late payments. And these late payment charges might be an additional load to the unpaid amounts. If you keep defaulting on your car EMI payments, your lender will send you a notice asking you to pay the remaining balance on your car loan.                                                                                                                      
  2. If you keep defaulting on your car EMIs, your lender will take possession of your car. Also, your credit score will reduce and your credit report will have negative issues recorded. When you avail of a loan or a credit card in the future, your credit score will be checked. With a low credit score, it will be hard for you to qualify for a loan or credit card. Even if you get qualified, you would have to pay high-interest rates.