I took a loan from my bank and used my car as collateral to secure that loan. In order to pay off the loan can I voluntarily give my car up to the bank? I know they can repo it if I dont make the payments and I have been up to now, but can I just give up the car to the bank of my own volition and have the loan be paid off? The amount of the loan was based on the value of the car I used as collateral. I want to get rid of my car anyways and I'm willing to do without one for a while. I live in the city part of chicago so public transportation is universal over here.
2006-06-29 09:23:03 · 5 answers · asked by vinsthemann 1 in Business & Finance ➔ Personal Finance
This is what will happen if you voluntarily turn-in the car:
They will charge you repossession and storage fees and then sell the car. The sale will be for far less than the loan balance, plus you may incur auction fees and legal fees as well. In the end, you will have no car and still owe thousands. In case I forgot to mention, your credit record will show a repossession (without a note about voluntary repossession).
If you are contemplating this, please don't! Sell the car if you can to satisfy the loan balance if you no longer need it. Trust me, they will take you for a ride if you turn the car in. Good luck!
2006-06-29 09:29:33 · answer #1 · answered by Anonymous · 1⤊ 2⤋
1
2016-09-26 21:33:18 · answer #2 · answered by Margarita 3 · 0⤊ 0⤋
if you give up the car then its still like getting repod,they will auction it off and you will still have to pay off the balance of what the car is left.best thing to do is let someone take over the notes in there name or sale the car.if the car is worth lets say 10000,and you owe 14000 then you will be upside down in the car as they call it.talk to your bank and see if you can get a cheaper payment option.that way the bank still gets there money and you get to keep your car.if you cant,then try to sell it.
2006-06-29 09:31:23 · answer #3 · answered by strange_busaman 3 · 0⤊ 0⤋
They auction off take your car and the proceed will go to the loan, then you will be still responsible for the balance if there is any.
2006-06-29 09:29:58 · answer #4 · answered by Timothy Summer 3 · 0⤊ 0⤋
I wouldn't recommend it. FICO suicide.
They will take the car to auction and sell it to the highest bidder and invariably that will be at least 20% less than the value. After that, they will pursue you for the difference.
2006-06-29 09:30:19 · answer #5 · answered by 3eleven 4 · 0⤊ 0⤋