Is not paying car loan is a crime?

I've been ask this scenario by one of my co worker, if they took a loan of a car and not paying at all from the beginning can that be consider a criminal matter like such arrest can occur or its only repossession that will likely to happen? My personal answer would be a repossession that would most likely occur since it's not a theft considering the lender approve the loan and the borrower went default. Please let me know if you have experience in the past or have knowledge. No stupid answer please. thanks.

Update:

I live in California

6 Answers

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  • 1 decade ago
    Favorite Answer

    No it's not a crime. If you default on a car loan, then the car can be repossessed and your credit rating will suffer.

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  • 3 years ago

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  • Anonymous
    1 decade ago

    No, it's not technically a crime. The car would be repossessed. I am not sure why anyone would do this intentionally though.

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  • Anonymous
    1 decade ago

    It's like not paying full price. Or just a minimum. Not smart financially, but logically I would have to say, it is not something you want to get into. Not sure when or how the law takes in. Car dealer will probably just take back car.

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  • 1 decade ago

    No, it's not. Your car will be repossessed and it will be on your credit report.

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  • Anonymous
    1 decade ago

    Theoretically, if you take out a loan, and never make a payment, it could be considered fraud -- that is a crime.

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