2007-08-25 06:26:54 · 7 answers · asked by limast36 1 in Cars & Transportation ➔ Buying & Selling
It's treated as a repossession. Your credit will be trashed and you'll probably have to make up any shortfall in the value of the car vs the loan balance.
Some will say that a voluntary repo will be less damaging to your credit record. Only by matters of degree, really. It's like shooting yourself in the eye with a .22 cal pistol vs a shotgun. One is a bit less messy than the other, but you're just as dead either way.
2007-08-25 06:35:17 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
It's as the others have said. The bank will turn the car over to an auctioneer and he will sell the car at a public auction. You are still responsible for the amount of the loan. The bank will reduce your principle by the amount they received from the auction minus any fees that they have incurred, like the auctioneer's commission, and other fees for paperwork.
They will come after you for the balance. They will also ding your credit and this will cost you more interest when you try to get another loan, if you can.
Is there any way you can sell the car and put up any extra money that is due on the loan and pay it off? That way you are in the clear, and your credit is intact.
good luck.
2007-08-25 13:41:12 · answer #2 · answered by Fordman 7 · 0⤊ 0⤋
The bank will probably arrange to sell the car at an auction or through a dealership. Most of the time the bank will only recover a portion of the money owed. They will then probably seek and receive a judgment against you for the remainder due.
Bottom line, it doesn't always get you off the hook. In fact unless you made a large down payment or are returning the car late in the contract it will almost invariable cost you additional monies.
2007-08-25 13:37:20 · answer #3 · answered by gimpalomg 7 · 0⤊ 0⤋
it will go on your credit as a repo. Best to try and sell it yourself...hopefully your not upside down meaning you owe more than it's worth. If you just give it back to the bank the next time you go to buy a car it will be very difficult..best to try and sell it.
2007-08-25 13:36:20 · answer #4 · answered by Anonymous · 0⤊ 0⤋
with experience in the finance dept. i can give you a little advice... DONT GIVE THE CAR BACK! all it will do is ruin your credit and you will have very little chance of getting financed again on another car (or house) anytime soon. plus you'll be without wheels.don't forget that good AND bad credit marks stay with you for seven years. sell or trade the car.
2007-08-25 13:39:52 · answer #5 · answered by dwe 1 · 0⤊ 0⤋
your credit is screwed for a long time put it on ebay or sell it before you do that or have someone take over the payments
2007-08-25 15:36:47 · answer #6 · answered by steve-o 3 · 0⤊ 0⤋
they will sell at auction and you will still have to pay what u owe and you credit will be for ****.
2007-08-25 13:34:57 · answer #7 · answered by Anonymous · 0⤊ 0⤋