I financed my car and about 1 month later my dad had a stroke..my mom needs my help financially and i want to give my car back to the dealer and possibly get something where the car note is less or I can just give back the car? how will this impact my credit or my chances of getting another car in the future?
2007-11-26 05:04:18 · 8 answers · asked by DRPRINCESS 1 in Business & Finance ➔ Credit
Auto finance is what I do for a living and the previous posters are correct, the dealer does not want or own your car, the finance company they sold the account to does.
If you return the vehicle, the lender will sell it for less they it's worth and still come after you for the balance plus all fees for towing, storage, reconditioning, interest and lawyers. This will amount to several thousand dollars and if you do not pay they can take you to court, get a judgment and then attach bank accounts, garnish wages (if your State allows it) and file liens on any other property you may own like cars, boats, land and homes.
All of this will show on your credit for the next 7-years making it very hard to get any other types of loans without making huge down payments, paying massive fees and State maximum interest rates.
You would be much better off selling it yourself and taking out a loan for the difference.
2007-11-26 05:34:36 · answer #1 · answered by ? 7 · 3⤊ 0⤋
Try to make some sort of arrangements with the loan company, they may be willing to help. Dont give it back to the dealer, if you cant keep it. Yes it will hurt your credit and they may sue you for the lose of profit for the car. Good Luck
2007-11-26 05:14:50 · answer #2 · answered by tarie75 4 · 1⤊ 0⤋
You need to sell it. They dont own the car. the bank that you financed it thru owns it. They dont want the car. They want the money you borrowed. Plus the interest.
If you give it back to the dealer. The dealer will turn it over to the bank that you financed it thru. The bank will sell it for way less than its worth just to get rid of it and come after you for the rest.
2007-11-26 05:13:18 · answer #3 · answered by heybulldog 5 · 3⤊ 0⤋
you'll lose a fortune trying to get out of a car loan one month in - the car is already worth less than the loan and will be for years, unless you put 20% down on it and then you'll probably lose that 20% in a best case scenario - walk away or repo will kill your credit for 7+ yrs and might force you into bankruptcy, becuase you'll still owe whatever the loan company doesn't get back from selling the car at auction - and eve one month old - they might get only 25% of the new price - happened to me - I wound up owing 22k on a 21k car (including tradein lost equity rollover) and they say they got less than 5000 for it at auction - a one year old car.
2007-11-26 05:23:46 · answer #4 · answered by Anonymous · 2⤊ 0⤋
The dealer doesn't carry your loan or want your car. You need to sell your car to pay off the loan or keep paying the loan you have. The bank or credit union doesn't like selling cars and you would owe any you owed more than they got for it.
Sorry about your dad.
2007-11-26 05:11:06 · answer #5 · answered by shipwreck 7 · 2⤊ 0⤋
If you give it back to the dealer it will be a repo on your credit. try and look into refinancing or see if you payed for an emergency Skip payments on you loan.
2007-11-26 05:12:26 · answer #6 · answered by Anonymous · 1⤊ 0⤋
It will show up as a repo on your credit! It will ruin your credit score for 7-9 years. You'll pay high interest rates, that's even if you get approved. Don't do it!!!!
2007-11-26 09:33:05 · answer #7 · answered by Anonymous · 0⤊ 0⤋
You can also have someone take over your payments, you would be out your down payment and what ever else you have paid, but at least you would not have the payment or a mar on you credit history.
2007-11-26 05:42:07 · answer #8 · answered by GoGreen 2 · 0⤊ 0⤋