will I be charged with repossission of an auto if i take it back to the dealer .because I can't afford it.

Question

i purchased an auto three month ago and now due to illness can't make payments. Will this go against my credit?

Answer 1

you are responsible for the loan contract, so you must sell the car for the best price and forward that money to the finance company. then pay off the balance.
the car dealer can do that for you, but will keep part of the selling price as their commission.
you will then owe whatever is outstanding.

Answer 2

A voluntary surrender is a just a bit better than a repo - but not much. Check with the lendor to see if there is disability insurance on your car loan - oftentimes there will be. If so, that would perhaps cure your problem.

Also - you don't mention if this is a buy here - pay here plan with the auto dealer. If it is, talk to them. Explain your situation to them. Most buy here - pay here dealers sell the auto for 100% more than they paid for the auto + some. Usually $500 or more. Chances are the dealer will not actually lose any money in the deal.

One ace in the hole you might have is to look at the documents / contract on the buy. If it is a buy here - pay here deal - find out if the auto dealer has the right to charge interest. If not, you might talk to your county attorney for guidance to possibly void the deal.

If the deal is with a qualified lender - such as a bank or finance company - either call them or go in & talk to them. They do understand financial hardship. Perhaps a lower payment for a short period of time will help you keep the car and the creditor will be satisfied as well.

By all means - stay in touch with the lender on a regular basis regardless of what you wind up doing.

And - last but not least - should a negative mark show on your credit file - you do have the opportunity to insert a "consumer statement" in your credit bureau file that states the circumstances that led to the less than perfect credit rating.

Good luck.

Answer 3

It depends on how big an upfront payment you made. If you owe the dealer a lot of money after he takes the car back, not paying that will go on your credit report. Most dealers don't report things that don't involve debt because it wouldn't do them any good and nobody would deal with them anymore.

Answer 4

of course. it will be a voluntary repossession, if they report it correctly to your reports. try talking with your salesperson, and explain the problem. even put some pressure on him/her that they talked you into purchasing a car beyond your means. maybe you can trade in for a small, less expensive car or give yourself a lower payment.

here's the problem, and the previous answer touched on this. the repo sale will probably be around 70% of the true value of the car. so you'll be stuck with a chargeoff on your credit for the "deficiency balance" - the difference between the loan amount and the sale price of the vehicle. if you don't trade in as i mentioned before, than you're better off selling the vehicle yourself, applying the proceeds to the loan, and the deficiency balance will be much lower. you'll probably have to discuss this with the loan company.

Answer 5

Check to see if where you had the car financed has an insurance policy that you sign in the contract for the car that will make payments until you are on your feet again. Other wise the company can take the car back and it will go against you credit.

Answer 6

Yes. It will show as a voluntary repossession but usually it would go back to the lender, not the dealer. They are holding the title for the collateral.

Answer 7

It will show on your credit report as a voluntary surrender. Not a good thing to be on your credit report.