What happens if you voluntarily turn in your car

Note the date, location and contact information of the person with whom you left the car. This information could come in handy if your lender has any questions in the future. In fact, it could take its toll on your finances in a few ways. The lender may try to sell the vehicle to make up as much of the remaining balance of the loan as possible. The lender might also take you to court, which could result in a portion of your income going to the lender to pay back the remaining balance you owe.

A voluntary repossession — along with any resulting collections or court judgements — can remain on your credit reports for up to seven years as a derogatory mark. The negative impact to your credit may make it more difficult to get a loan down the road.

If you do get approved, lenders will likely charge a higher interest rate due to the higher risk of defaulting on the loan. Before you decide to turn in your car, consider whether any of these options could help improve your situation.

A voluntary repossession should be a last resort. First, call your lender and explain the situation. My car was broke and one day while I was out of town, my husband of only 3 months decided to call the finance company to voluntarily surrender the car to them.

When I was told what happened I contacted the finance company and they told me the car was auctioned and that I would need to come in to the office to sign the papers for the balance. Good luck! I would see this response I gave to Chas. My husband refinanced two years ago his car with a credit union. Just now we noticed that the credit union is not reporting the loan to the credit bureaus. We got that car in order to rebuild my husbands credit union and now we do t know what to do.

If you let the vehicle go they can come after you guys for the deficiency balance. They also could negatively reflect that on his credit. If you have been making payments on time then request a payment history from the creditor and send that in to the credit bureaus requesting that they correctly show that payments have been made on the vehicle.

That should help build his credit if timely payments have been made. My husband and I voluntarily surrendered our RV when we entered Chapter 13 bankruptcy several years ago. We were never behind in our payments, but thought this was the right thing to do. Under the Chapter 13 agreement we are still paying the full balance of the loan. We thought the balance would be reduced since we surrendered the property with the good faith understanding that the creditor would sell the property. Since we are paying the full amount can we expect the property to be returned to us once it is paid off or have we been defrauded?

If you have an attorney for your Chapter 13 bankruptcy you should contact them about this. The creditor is under an obligation to mitigate their loss. I purchased a Honda Accord 4 years ago, the purchase price was 14k and 4 years later I still owe 17k.

I have missed a few payments, but always made arrangements and took care of it with the company and remained in good standing but the balance never goes down. I feel that my loan is predatory and to my calculation I have already paid upward of 20k for this car.

I still have 2 years left and I still owe the full balance. I was recently told by the CS agent that I could still have a balance after my maturity date due to my late payments. I feel that at this point a voluntary repossession is my best option.

Do you have any better options? You are certainly in a tough spot. If you owe other debts credit cards, medical bills, personal loans, etc. Can you voluntery surrender your motorcycle to harley davidson if you have a medical disability and can no longer make your payments without it affecting your credit score?

You can certainly surrender your vehicle but they will show a negative mark on your credit report. My car got impounded and I was told that the dealer would be able to take the car out for me and I would just pay them back in payments. Now they are telling me that they are not able to give the car back because of the reasons it was impounded unless I get it through another finance company. Be sure you completely understand the terms when you make the voluntary surrender.

The lender will resell the vehicle, and the proceeds will go toward the balance you still owe on the loan. If there is still a balance remaining after the sale and you don't pay it, it could be turned over to a collection agency. This may result in a collection account being added to your credit history. If the remaining balance is forgiven, that amount will likely be counted as additional income, which means you will have to pay taxes on it.

When you voluntarily surrender the vehicle, your credit report will indicate that fact in the status of the account. It will be listed as a voluntary surrender and any remaining balance will continue to be reported. If the bank has to come take the vehicle, they will report the account as a repossession. That will be reflected on your credit report, as well. Both are very negative, but a voluntary repossession may hurt your credit scores slightly less than a repossession.

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