What Is Maturity Date On Car Loan

A close-up of car keys and auto loan paperwork. The maturity date on your auto loan is the light at the end of the tunnel -- it's the date you are expected to make your final payment. After you make that final payment, no lien exists against the vehicle and your contract with the lender is satisfied.

For mortgages, the maturity date refers to the period in which the payment for the mortgage has to be completed. In the case of mortgages, the maturity date is also the date on which renewals can take place.

What Happens When an Auto Loan Matures With Monies Owed? The maturity date of your car loan is the day on which your final payment is due to be made. If, having paid your final installment, you still owe money on your account, it's likely that either your lender has made an error or you have failed to keep your account in good order.

It can range from a few years to several years as well. It indicates to the lifespan of a specific loan. When the loan maturity date is up, it means the period for the borrower to pay back the loan is finished and the repayment can be terminated form there on forwards.