I cannot afford my car any more, can I return it to the company?

Question

I bought it about one year and half ago, but I lost my job and now I cannot not paid for it. I don't know wich one is worst repo or return.

Answer 1

A return is a repo, it has the same effect on your credit rating. Did you try to get another job? You need to hang onto your car if at all possible. You probably need a car to get to and from work. With no car, your employment opportunities may be limited. If you let the car go, you will have a hard time getting another one for several years and you will still owe the bank money. Whether they repo it or you turn it in voluntarily, you are still going to owe money on it. The debt will not go away, you signed a contract and you owe the toatal amount of the loan. The repo will only reduce it partially.

Answer 2

It depends on a couple of things. First of all, how long have you had it? Usually if you buy a car, they'll give you a period of a few days or so to return it for any reason. However, if you have had it for longer than that, I doubt the dealership will allow you to return it for financial reasons. It would be a different story if there was something wrong with the car that could not easily be repaired. Most states have something called a "lemon law," where a car must be taken back by a dealership if the car proves to have any chronic, unfixable problems, or if it just has too many problems. Under this law, a car deemed a "lemon" must be taken back at any time, provided the car owner has documentation to support its lemon status. That's a lot of red tape to get through, though.

If there's nothing wrong with the car and you've had it for more than a week or so, I'm afraid the only option would be to try to sell it yourself (if you bought it instead of leased it), or try to trade it in on a cheaper model, though I think you may have some difficulty trading it in so soon after buying it. Sorry.

Answer 3

A lot depends on which state you purchased the vehicle in and how long you've actually had the vehicle. Some states have a "cooling-off" period law which allows a buyer several days in which to think the purchase over, and during this period, the buyer is allowed to simply return the vehicle to the dealer and be refunded his or her down payment, no harm no foul. I know for a fact that California does NOT have a cooling-off period law, once you sign the contract, the car is YOURS for keeps.

Simply turning the vehicle back in to the dealer because you "can't afford it" is akin to a repossession. It will be a huge black mark on your credit, and you may still be liable for the difference between what you owe and what the car is actually worth. It's not a good option.

Answer 4

You can't sell the vehicle, you don't own it, the finance company does. If you return it to the lender it will still be reported on your credit report as a repossession, there is no difference between a regular and voluntary repossession. But if you return it, you will save some money in the long run because you won't have to pay for finding the vehicle and towing it. In any case, if it sells for less that what you owe, you will still be responsible for that amount.

Answer 5

You can, but do not be surprised! Most dealerships will not come close to what you paid. Your best bet is to sell it yourself. I hope you saved everything you did to it since you got it. Helps it sell. Just to give you an example, a friend bought a brand new Yamaha, it was to big for him,took it back next day. Paid $11,000.00 for it, they offered to buy it back for $7,800.00. I think they are all that way. Depreciates right when u take it off the lot. Good luck

Answer 6

What company? The company you bought it from? If it's in the first few days after you bought it, yes ... otherwise, no way. I'd say try and sell it. Carmax buys cars; you'll get more money selling it yourself, but it's a lot of hassle.

Answer 7

A return is called a "voluntary reposession".

The BEST thing, is to try to sell it for the loan payoff. That's the way to get out of it, owing the least amount of money.

Answer 8

No. You signed a contract stating that you bought that car. Now you have to pay for it. You can't just drop it off at the dealership and be like, "no thanks, I don't want it anymore."
You have to try and sell it or trade it in for something you can afford.

Answer 9

Most dealerships will purchase the car back from you, but at a greatly reduced price, since cars depreciate so quickly.

If you have a carmax near buy, ask them how much they would be willing to pay for the car. (http://www.carmax.com)

Any difference between what you sell it for and what you own would still be your responsibility.

Answer 10

A CONTRACT IS A CONTRACT AND YOU SIGNED IT, IT MAY SOUND HARD BUT THEY DID THEIR PART AND YOU MUST DO YOUR PART.

TRY ADVERTISING IT AS A PICK UP PAYMENTS AD, THIS WAY YOU WILL NOT DAMAGE YOUR CREDIT.