what will happen if i turn my car back over to the bank?

Question

I owe way to much on it and cant sell it for what is owed. if i give the keys back yo the bank what will happen?

Answer 1

I know someone who did this and after it was sold she had to pay the difference. Her payment wasn't much less than it would have been if she had just kept the car. She told me if she had known this would happen, she would have kept the car. The bank doesn't care if they sell it for what it is worth because you will be made pay the difference. They can even have your wages garnished.

Answer 2

It's called a voluntary reposession, and it's NOT a good idea. Voluntary means you gave the car up. Involuntary means they had to literally come tow the car away from you for late payment. You may not have any late payments yet, but regardless, if you turn in the car to the dealership basically what will happen is they will call the lender and tell them what you did, the lender will let your payments get behind to the point that they're willing to reposess it, and then they come pick it up. A reposession is a reposession, and it's absolutely horrible for your credit. It can stay on your report for upwards of 7-10 years and the bank you financed the car through can still come after you for the remaining balance on the loan even if you don't still have the car. And when you go to try and buy a new car, no one will sell you one because one of the first things we see on your credit report is that repo and if it's anywhere near recent (aka not about to expire in a couple months) we don't want to deal with you. The only people who will are the shady "in-house finance we finance anyone no matter how bad your credit is" places that charge you 28% interest on a car that they're overcharging by at least a few grand for in the first place. Long and short of it, DONT turn that car back in. Negative equity (owing more than the car is worth) is a fact of car buying. About 75% of car sales involving trades have negative equity involved, and about 80% of deals that can't be financed are due to an excessive amount of negative spending. We always recommend to put down about 20% on any car purchase so you can at least break even once you drive off the lot. If you don't have that 20%, you shouldn't be buying the car. As for your current car, keep making payments until your equity situation is better, or double your payment to speed the process up, or put whatever money you have left into a savings account and save like crazy so you can pay off whatever negative equity you may have and possibly put money down on the next car when you are in the financial situation to buy another one. The only advice a good dealer will give you in this situation is WAIT IT OUT!

Answer 3

It goes on your credit report as a reposession and dumps your credit for three years. THEN, as a little add-on, the bank sells the car at auction and makes you pay the difference on what you OWE and what the car sells for (usually peanuts). Make no mistake -- you WILL have to pay the difference because a judge will order you to.
Bad, bad plan, dude.

Answer 4

The bank will sell it at auction. You will be responsible for the difference between the sales price and what you owe. The bank's collectors will chase after you to pay what you owe.

Answer 5

The bank will sell it cheap and YOU will be responsible for the remainder of the loan along with any fees associated with the sell of the vehicle.
You are upside down with your loan. It happens to a lot of people. The best thing to do is ride it out

Answer 6

THE BANK WILL TAKE IT BACK, SELL IT AT SOME AUCTION, YOU WILL PAY THEM THE DIFFERENCE THAT THEY LOST OFF THE SELL, YOUR CREDIT WILL BE RUINED FOR 7 YEARS AND YOUR LIFE YOU GO DOWNHILL FROM THERE.

Answer 7

They will take it, but you will be likely be reported to the 3 credit agencies as a bad debt. It will take 7 years to clear.