can i give my truck back to the bank without hurting my credit?

Question

im paying 15,000$ for the truck but i owe 21,000$ because i traded in another truck to get the 1 i have now

Answer 1

Your reports will suffer, big time.

The original loan will report as a charge off.
Then they will place another tradeline on your reports showing the deficiency balance.
Then if they sue and win, they will place the judgement on your reports.

So right there is 3 negative tradelines on your reports.

As for the repo itself, you say that you owe $21,000 for a $15,000 truck?

If you turn it in as a voluntary repo or allow them to repo it, they will sell the truck for "maybe" 50% (more or less, probably less) of what the book value is, not what you owe.

The truck might sell for anywhere from $4000 to $6000.
Which would leave a deficiency of $15,000 to $17,000
Then you will have the repo fees tacked on, which could run up to $1000 to $2000.
Then, if they sue you for the deficiency, you will have to pay all of the court costs, which can get pretty steep. And, you will probably have to pay interest on the judgment.

That would leave you pretty much in the same shape financially (or probably worse) that you are right now, except your credit will be trashed and you will be paying that much money or more for a truck you no longer have. And believe me, for that kind of money, they "will" sue.

I would normally suggest to just keep on paying rather than have a repo. And, if you absolutely cannot keep the payments up, to sell the truck yourself for a bit of a loss if needed which you would to pay when you sell the vehicle and pay off the creditor. But, if you owe that much money over the actual cost of the vehicle, you won't be able to sell it yourself without taking a huge loss.

All I can say is keep the payments up, refinance it if needed to lower your payments.

If you just cannot keep the payments up because of some unfortunate circumstance, then let them repo it and file bankruptcy. Your credit will be trashed either way though.

Answer 2

A banker told me, that they do not put “repo” on the credit bureau report if it is voluntary giving it up. It is reported a little differently but it better than the word "repo" on your report.

Answer 3

Not unless you know someone there you can make a deal with, try listing the vehicle in the classified section as take over payments or payoff bank.

Answer 4

Nope, it shows up on your credit rating as "Voluntary Reposession", and most likely, you can't take it back to the bank or dealer without trying to remedy the situation (payments) first.

Answer 5

nope. you signed a contract stating you would pay. Whether you give it to them with a pretty bow or Repo.....it's the same. I suggest trying to refinance with a lower rate. Or sell the thing yourself for the balance of the note.