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nanamo asked in Business & FinanceCredit · 1 decade ago

how do return a car that you owe money on to the bank?

can no longer pay car payment what to return car.

9 Answers

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  • D S
    Lv 4
    1 decade ago
    Favorite Answer

    In order to save your credit do you have a cash reserve on one of your credit cards; balance plus on your checking account; good enough credit now to apply for a personal loan? Once you surrender the car, your credit is messed up, up for years. If you try to buy another car, they are going to want a co-signer. They will charge you the highest available interest for the next car.

    As we all know the bank is not in the auto business, they do not want the car, they only want money, money.

    I would good around my house and see what do I have that I can sell to cover one more month. Do you have a collection of something that a friend would hold for collateral until you paid them back? Think don't panic, put your ego aside and let your family and friends know that you are in a bind.

    Will you be able to get to work on time without a car? Go to your boss and maybe he would authorize a one time only salary advance. Agree for them to deduct XX from each check until you have paid the money back.

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  • Anonymous
    1 decade ago

    Why would you want to do this? This will ruin your credit for 7 years and you still have to pay for the car! Why don't you take out a second job or find one that pays better!

    Anytime you take a loan you should make sure you can pay for what you are borrowing for! If you default on this loan, you are telling future lenders that when the tough gets going you wont pay! Why would you want to do that? Be responsible and find a way to pay your loan and keep your car!

    If you call, most banks will lower your payments to keep it from going into default. Explain your situation and try to keep from ruining your credit!

    If you allow the bank to repossess the car. The first thing they will do is auction off the car for small amount....they will deduct this from your remaining balance. The small amount will not reduce your balance by much...and you still owe the balance! The will try to collect....if they can't collect then it may get turned over to collections...then if they can't collect...and considering this is an auto loan...they will more than likely take you to court. Then you will owe the balance...plus interest...plus lawyer and court costs...and it will cost you three dings on your credit report...a repossession account with original debtor...a collection account....and a judgement....and it is legal for them to do so....your credit will take a huge dive and will not recover for a long time.. judgements stay on your credit report for 10 years!

    The best option is to talk with the bank or creditor and ask for your loan to be re-done with much lower payments! Explain to them that you will have to let the car be repossessed if this is not an option and they will more than likely do it to keep down the hassle of repo and collections!

    Again...be responsible and do everything possible to pay this debt before allowing it to result to repossession! This is always the worse thing to do.

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  • 1 decade ago

    You should call the bank and ask them where you can drop it off...usually you can return it to the place you bought it and they can make arrangements with the bank to get it back to them. Remember, you will still owe any deficiency due after they sell the car....ie...if you owe $10,000.00 on the car and they sell it at auction for $7,000.00, you still owe the $3,000.00. The loan does not go away once you return the car. It will help your credit though to do the right thing and return the car.

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  • 1 decade ago

    Don't call bank unless they are calling you i.e you are past due on payments and they want it now.

    If you just can no longer afford, advertise on ebay, craiglist whatever that you would like to sell the car. If you are desperate just try to sell it for amount sufficient to pay off the loan.

    You can call Bank, tell them you need Payoff amount (this could be loan plus interest). If you are past due, also let them know that you intend to sell and will payoff the loan the moment you sell the car.

    If you speak to them you can protect your credit. They like someone who has plan and does not just avoid them.

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  • 1 decade ago

    you take the car back to the place you bought it and turn it in as a voluntary repossession. If you don't, someone will come and repossess it after you miss a couple of payments. Even though any kind of repossession looks bad on your credit report, a voluntary repossession would be better. You will still have to pay for it though unless you file bankruptcy.

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  • Anonymous
    1 decade ago

    call them and make arrangments. Not a good thing you should pay on it if you can. I would drop it off at the car lot you bought it at or a local branch if there is one and call to tell them to come get, rather than your house.

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  • Anonymous
    1 decade ago

    Either give it up to the bank (REPO) and take the hit on your credit OR sell sell sell. If you have to take the loss and pay differences then so be it.

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  • 1 decade ago

    Returning a car is tantamount to breaking the contract...so they will sell it and come after you for the difference. I would try selling it and taking a loss.

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  • 1 decade ago

    Call the bank and ask them what you should do.

    You will still owe them depreciation on it unless you can sell it to someone else.

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