If you buy a new vehicle with the OnStar system activated?

Onstar will inform the bank where the vehicle is located if the bank contacts Onstar. Onstar will not notify the bank without being asked to do so. Onstar would treat the car as if it were stolen because if you haven't paid for it, then it is stolen.

I'm not quite sure if they are allowed to tell the bank even though they are the owner. I got towed once and OnStar would not tell me where my vehicle was unless i filed a police report, however they connected me with the police department who keeps a record of all towed vehicles. A friend of mine had a new Cadillac and the OnStar microphone went bad and her husband was lost, so she tried to play mediator between him and OnStar over the phone and they would not disclose his location to her even though she was the owner. I'm sure there is a stipulation somewhere so I would check the OnStar service agreement.

As a side note, whenever you call OnStar (not from the vehicle) they ask if it has been running within the last 48 hours and obviously it is an electronic system so my assumption is that if electrical power (battery) is removed from the vehicle, after 48 hours the system is useless.

I think they only inquire if its at least three months late. If they want to locate the vehicle before that then yes, they can tell them. You should also know that in some vehicles, especially rentals and leased vehicles, that they have a device chip inside that can deactivate your vehicle and they can stop you from going anywhere in it if you miss payments or any other reason they deem worthy. ;)

Opt out on On-Star. Yes it can be helpful but if you live in a small town where highways aren't the main way to travel and instead there are streets, roads, circles and such they don't do much to help. It is basically a waste of money if you don't travel the interstate and highways.

Its also hard for them to pinpoint you to the "t". But they can get police to you, eventually. Just last week we had a call of a vehicle accident. They were giving all kinds of intersections and some did match with the roads and highways that we had, but it turns out that the wreck was in a whole other state.

Sorry I got off point. . . Yes, they can tell the person who gave you the loan where the vehicle is if you aren't making payments.

are you planning on missing a payment? Yes, the vehicle technically belongs to the bank, and im sure onstar could tell the bank

yes