If you default on a secured car loan, the lender can repossess the car, sell it, and use the proceeds to repay your outstanding debt. Additionally, the lender may charge you late fees, penalty interest rates, and other costs associated with the repossession and sale of the car. Defaulting on a secured car loan can also negatively impact your credit score, making it harder for you to obtain credit in the future. To avoid defaulting on a secured car loan, make sure you understand the loan terms, make timely payments, and communicate with your lender if you experience financial difficulties.