how do i give my financed vehicle back and not ruin my credit completely?
had the vehicle one year just can't afford the payment and insurance, 4 yrs left to pay
- 1 decade agoFavorite Answer
You really can't. If you give the car back, it will be a voluntary repossession on your credit, which is about as bad a regular repo. It will stay on your credit for seven years.
Why don't you refinance it and get a lower monthly payment? You can do a online search for auto refinance. There are a good many companies that will refinance a newer model car.Source(s): in the mortgage business
- 1 decade ago
See if the finance company will refinance the vehicle. If they will extend the term back out to 5 yrs it will lower your payments making it easier to live with .
If this doesn't work see if they will set up a payment or two(putting it at the end of the loan) until U get Ur ducks in a row selling it or something.
If U have a relative or something that would take over payments along with the car,this would alleviate your monthly debt,save your credit(if they pay as promised) & maybe help someone else out. The down side is Ur credit is still tied up until the vehicle is paid off.So U couldn't run out and finance another unless Ur household income increases enough to substaintiat the Loan.
If for whatever reason it has to go back:(( you will either need a trade with lots of equity or a large down payment and still pay an extremely high finance charge(rate) to get another one.
Have U shopped Ur Insurance Co.? It never hurts U may come out cheaper.
YOU COULD WIN THE LOTTERY AND PAY CASH--LOL we all wish we could--Good Luck!
- Lisa ALv 71 decade ago
You need to sell the vehicle (hopefully for more than you owe on it) and use the money to pay off the loan completely.
You do not want to "give back" the car. The loan company doesn't want it. They want your money and will frown upon anything else and it will affect your credit.
- yidlmamaLv 51 decade ago
You can't do it without tarnishing your credit...so what you need to decide is what is going to be worse for your credit ...sending the car back or having to struggle and have lots of late payments on your history!!!
If you decide to turn the car back in ...it's called a "voluntary repossession"...when it is in your credit report it is simply "repossession"...so it makes no difference of whether you hand it over at your own will or if they come and take it...it's still a repo!!
Can you find somebody to buy it for what you owe on it??
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- Anonymous1 decade ago
Sell the vehicle, get a loan from the credit union for the "difference" between what's owed and what you'll get, and call it part of your experience. If you do this, you won't ruin your credit rating at all.