If I do a voluntary repossesion on a car and then turn around and finace another car will my credit repair?

Question

Ok so I made a deal with a delearship to get another car loan at a cheaper price then my current one but since I already have a car loan I want to do a voluntary repossesion will my credit score go down dramatically and will it go back up once I finace another car

Answer 1

What really should happen is the car you have now should be traded in and paid off. Like most people these days you more then likely have a car thats worth less then the loan payoff amount. A repo is a repo on your credit no mater what. By doing a voluntary surrender does not stop your obligation on the loan. All that does is make it cost less in the long run. The finance company will not charge you the repo fees. You will still be lilable for the difference of the value of the car, default fees and their attornney fees. You can avoid all that if you call the finance company and maybe make the loan for a longer term so you can aford it. Or tell them you are trading it in and see if you can work out a new loan with them for any short fall. That way your credit will not be hurt. If you are already 60 or more days late on your payment you credit score suffered as well. I would trade the car in and let then dealer selling you the other car help you work out things. Maybe he can roll the difference between the value and the payoff into your new loan and it might still be cheeper then your paying now. This method will not hurt your credit at all in fact might make it better because it will show a big loan paid in full early. Good luck

Answer 2

hmm depends on who the loans are through i found this out the hard way i had a loan and paid it off in a little over a year only to find out they don't report the "good"payments to credit reporting agencies just the bad.so first off before you take the new 1 ask if they report.as to sending the other back you signed a contract so if they are willing to take it back and thats a big if yes it will affect you score unless they are the same people who you are getting the 2 car from and they are aware of the changes

Answer 3

No. Repo will kill your credit score and probably wipe out the deal you have in place as you score will drop drastically with the repo, voluntary or not. There is no overall "repair" from this situation. Of course, you have to factor in the deficency balance of whatever is left on the loan and collection and sale charges that selling it won't cover; that's yours too!

Answer 4

while a motor vehicle or airplane area fails, legal accountability is assigned finding on an entire complicated of things. Is the motor vehicle nonetheless below guarantee? replaced into the failure by way of overlook of recurring upkeep, or replaced into it a gross fabric sickness that would desire to have been caught in qc? replaced into the failed area something trivial like a radio tuner knob, or something secure practices-extreme like a force shaft or airbag? replaced into it a bona fide layout flaw or replaced into the failure by way of undesirable production high quality? everybody is generally held responsible for their very own mess ups - via the courts for offender mess ups, or via society for mere gaffes. The exception is toddlers, the place parents are many times held responsible to a pair degree if the baby's failure stems from parental incompetence.

Answer 5

It will go down not up and they will wholesale the car leaving the balance for you to pay.