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Voluntarily Surrender of Vehicle

I have been having a rough time financially for the last few months – and have come to realize I cannot continue to make my car payments. I got myself into a high interest car loan, when I bought my car a three years ago – and didn’t realize the interest rate, and how much I would still owe on it.

What are my options, if I cannot make these payments ? I know there is no way, I will be able to sell the car, for what the payoff amount is. How would voluntarily surrender the vehicle work ? Would I still have to make payments after I return the car ? What exactly does repossesion mean – and if the car gets repossesed – would I have to make payments as well ?

Thanks for any information !

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One Response to “Voluntarily Surrender of Vehicle”

A licensed trustee said...

If you sell the car to reduce the loan balance, if you voluntarily return the car, or if the car is repossessed the end result will be the same. The company that financed the car will require you to pay whatever the remaining balance on the loan (or lease) is for the vehicle. If you have had a good payment history with the company they may allow to repay the balance over time, but they are within their rights to ask for it immediately if they prefer.

If you have other debts in addition to the car you may want to talk to someone about consolidating the total so that you only have one monthly payment. If your bank is not willing to consilidate your debts then you should consider using the links on the side of the page to finad a local professional to discuss your options.