2007-03-20 13:54:00 · 5 answers · asked by dancingqueen_grace 1 in Business & Finance ➔ Credit
Yes it is a bad idea. It will show on your credit as a voluntary repossession for up to 10-years if they have good collection people.
What happens is the bank will take the car and send it to the auction where they will sell it for a lot less than it's worth. Then they will come after you for the balance left over from what they got for the car verse what your balance was when you turned it in plus lawyers fees, towing fees, storage fees and auction fees.
This will result in a judgment on your credit that will haunt you for years and could result in garnishment of your paycheck, attachment of your bank accounts and liens being placed on any property you may own. In the long run you will end up paying for the car anyway but you will not have the use of it.
Sorry to be so negative but that's just the way it is.
2007-03-21 03:07:59 · answer #1 · answered by ? 7 · 0⤊ 0⤋
Yes. Its really bad. Can you sell it instead? Selling it at a loss and paying off most of your loan with the proceeds would be a good ting to do. You are still responsible for the balance of the loan though. Giving the car to the bank is no better than having it reposessed. You are STILL RESPONSIBLE to pay off the loan! It will go on your credit report that you defaulted on the loan. If the reason you are doing this is to buy another car, forget it. Even if the car is costing you a lot in repairs, its probably less than the cost of switching cars. The cheapest car is the one you already own.
2007-03-20 21:34:34 · answer #2 · answered by Diggerdoo 3 · 1⤊ 0⤋
The bank doesnt want your car. The car is just collateral against the loan and chances are that the value of the car is less than the value of the outstanding debt. In short, the bank wants its money, not your car.
If the bank reposesses your car they'll sell it at auction and still come after you for the difference between the selling price and the debt. Turing your car in wont solve the problem then.
At the end of the day, remember, the bank wants its money. That's all.
2007-03-20 21:04:13 · answer #3 · answered by sothere! 3 · 1⤊ 0⤋
yes unless you have had it for less than 48 hours. Some finance institutions give a 12, 24 or 48 hr period before the deal is oficially closed. giving it back to the bank puts a repo on your credit deducts 50 pts from your score and can last for a maximum of 10 years sometimes longer if they hire persistant debt collectors. your best bet is to keep the car and lease it to a family member or something, selling on ebay might prove useful because they can take the loan from you and change up to themselves
2007-03-20 21:02:06 · answer #4 · answered by 1chance 3 · 0⤊ 0⤋
Yes.
Yes.
At least 7 yrs.
2007-03-20 20:59:43 · answer #5 · answered by Jo Blo 6 · 1⤊ 0⤋