I can not afford my car payments and insurance can I give the car back without any penalties?

fire4511

If you let the finance company take the vehicle, it is a repossession! This will stay on your credit for 7 years, making it hard for you to get credit at a reasonable rate anywhere!

The finance company will sell the car and the proceeds of the sale (less any and all auction, storage, cleanup, and repossession fees) will be applied to you loan balance! You will then have to pay that balance, or they will sue you, seize your bank accounts and garnishee your wages!

If you owe more than the car is worth, you need to find some way to pay your bills. A second job, or overtime on your job may help. You may also want to cut expenses, getting rid of cable TV, internet, and cell phones for a while. You might also consider selling other things of value to raise some money!

If your payoff balance is less than the value of the car, you can sell the car to a dealer or private party, and save your credit rating.

curmudgeon

NO.

stoppdemadness2003

No, it will destroy your credit and with bad credit, you won't be able to buy diddly or rent a place to live. Look, you need the car so take the responsibility and deal with it. Take on a second job for your extra cash. Once a failure, always a failure.

fittobedyed

No. It's going to mess with your credit, especially if the car is reposessed. You can try selling it but you won't get back what you owe on it. Good luck.

piercni

You need to ask the boss for a raise. Get a 2nd job. sell the car and take a loss. Or take the car apart and sell as many parts of it as you can on ebay thats the only way you'll break even or make a profit. But don't let it go back you'll end up screwing yourself.

lady

Sorry, No...

mbrcatz

Not without penalties. It's called a voluntary reposession - what they do, is auction the car, and send you a bill for the difference between what they auctioned it for, and what your payoff is.

You're usually in much better shape if you sell it yourself - you'll get more than the auction would ever bring. You'll still be upside down, if you haven't had the car at least two years, but you'll owe less than you would with a voluntary reposession.

Brandi E

If you give your car back then they will resell it usually taking a very low offer and then you are stuck with the rest of the bill. This will look a little better on your credit then a repo.

Firebird

It depends. In some states you can back out in a certain amount of time, like 2 or 3 days. It's a very short time. If you bought from some buy-here-pay-here car lot that only sells to low-lifes, then they probably don't mind at all. They get that all the time. They might sell the same car 3 or 4 times, and the cars don't depreciate much, because they're already pretty much worthles

If you're a regular person with a regular car loan, then absolutely not. You've borrowed money from a bank, using the car as collateral, so you've entered into a financial contract with a bank that you will have to unravel. The car dealer has already sold your loan to some bank. You will have to pay the loan off in full (to the bank) and sell the car.

GERALD S. MCSEE

First, contact your finance company. Different ones have different policies.

Normally if/when the finance company will take it back, sell it for what they can. They will apply that money to the balance owed and you will be held responsible for the rest.

The ideal would be to find a qualified person to take over the payments. The finance company will work with you on that for that way it is much simpler for them and they get their investment back.

In that case there will be no penalties but if they don't get their investment back then you will be hounded and reported to the Credit Bureau.

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