topic Re: Returning a car to the dealership in Auto Loans

Returning a car to the dealership

Anonymous — Mon, 09 Apr 2018 16:35:52 GMT

I purchased a car using through Capital One. I can't afford the payments any more (no lates) and want to return the car. How do I do this and what will happen with my credit as a result? Any help appreciated.

Re: Returning a car to the dealership

RobertEG — Mon, 09 Apr 2018 16:42:13 GMT

That is called a voluntary repossession. It would be returned to the creditor/lien holder, not the dealership.

Google on that term for details.

Re: Returning a car to the dealership

Anonymous — Mon, 09 Apr 2018 17:18:04 GMT

Your credit score will dive and you will likely still be responsible for the difference between what the car sells at auction for and what you owe.

Re: Returning a car to the dealership

A1Credit — Mon, 09 Apr 2018 18:58:03 GMT

Have you thought about refinancing if the interest rate it high on the loan? Maybe that can make your payments more affordable.

Re: Returning a car to the dealership

pipeguy — Mon, 09 Apr 2018 19:51:45 GMT

@A1Credit wrote:
Have you thought about refinancing if the interest rate it high on the loan? Maybe that can make your payments more affordable.

Cap-1 tends to have high rates, you might look at DCU (anyone can join) or NFCU (if you qualify) or PenFed (anyone can join). I have no idea what Cap-1 gave you but I've seen some pretty high rates from them, nor do I know your credit scores, but even if you don't get the "best rates" from DCU (et al) it's going to be a lot cheaper than Cap-1 as a rule.

BTW, a car repo even if you surrender it on your own, is going to cost you dearly in scoring and any chance of a prime car loan for at least a couple of years - something to avoid if possible.

Re: Returning a car to the dealership

Shooting-For-800 — Mon, 09 Apr 2018 23:12:22 GMT

It will completely destroy your credit.

Go get 5 offers to buy from 5 different dealers and see if you figure out how to pay the difference off if you are upside down.

Re: Returning a car to the dealership

Anonymous — Mon, 09 Apr 2018 23:56:09 GMT

My scores are in the mid 500s. I don't think anyone would refinance for me. But, it looks like I'd be even worse off by returning the car. I really don't know what I'll do. I'd like to get an equity loan on some property I own outright but my scores are the pits. I haven't made a decision yet about what to do but I don't have many options left.

Re: Returning a car to the dealership

A1Credit — Tue, 10 Apr 2018 01:42:06 GMT

Someone suggested selling the car and paying the difference if there is a balance left.