if you took out a loan for a car throught a bank and u give them back the car do they drop the rest of the it

Question

i fianced my truck through united auto credit and i cant make a payment so if i give them back my truck is it going to make a negative mark on my credit even though they got the car back!

Answer 1

Auto finance is what I do for a living and this is what will happen.

The lender will sell the vehicle at auction for less then it's worth and come after you for the difference plus all fees for towing, storage, reconditioning, auction, interest and anything else they can think of, this will amount to several thousand dollars, if you do not pay they can take you to court and get a judgment, at that point they can 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 activity will show on your credit for the next 7-years making it very hard to get any other types of loans without making massive down payment, paying huge fees and State maximum interest rates.

Answer 2

The bank essentially gave you money, not a truck. You just simply bought the truck with the money they gave you. So, when it comes time to pay them back, they want back the same thing they gave you - MONEY.

If you cannot afford to make the payments, then you should consider selling the truck and purchasing something more economical. If you can do this successfully and pay off your loan, your credit score will actually improve!

If you cannot sell the truck, presumably because you owe more on it than what it's worth - then you have some trouble. If you stop making the payments, the bank can (and probably will) take the truck back from you. However, this will not cancel the loan. What will happen next is that the bank will sell the truck and send you a bill for whatever the difference is that you still owe. You will still be responsible to pay the difference!!!

So, if it would seem that you're in between a rock and a hard place, you might want to temporarily cut back on some expenses in your life (cell phone, cable TV, eating out, expensive groceries, electricity, etc). You may not be able to eliminate your expenses, but you can scale them back a little bit. Also, you might consider temporarily taking on a 2nd job just long enough until you can get your truck paid off.

Also, you could try to get a loan from some people on prosper.com right here:

http://www.prosper.com/join/gkisystems

Answer 3

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Answer 4

Unfortunately, yes! You will have a repossesion on your credit -voluntary or not. If the creditor sells the car and they are able to recover the total amount owed on your remaining debt then at LEAST they want sue you for the deficiency; however, this is rare. More than likely, you will have a repossession/charge off on your credit AND a balance owing. Check your credit and contact the creditor to keep tabs on the disposition of your account.

Answer 5

No, returning the vehicle does not relieve you of your responsibility to pay the loan back.

The car will be sold by the lender, and the proceeds will be applied towards your loan. However, the sale price of the vehicle is generally not enough to satisfy your obligation, especially if it was a brand new vehicle when you purchased it.

You will still be responsible for paying the difference between what you still owed and what they were able to get for the vehicle, and it will be on your credit report for the next seven years.

Answer 6

Getting a new car loan is not easy though it can be the easiest way to attain your dream car. There are many players in the car finance industry and for the consumer choosing the bestextra charges such as processing, transaction fees, documentation fees or any other fees. So one has to confirm with the financer as to the other charges that accompanies an auto loan.

Answer 7

absolutely! it's your responsibilty to sell the truck and pay off the loan. Not drop it off in their parking lot and say "here take it back" They wouldn't even take it.