Returning a car to the dealership

[Anonymous]

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.

[RobertEG]

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

Google on that term for details.

[Anonymous]

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.

[A1Credit]

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

[pipeguy]

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@A1Credit wrote:

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

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+1 

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. 

[Shooting-For-800]

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.

[Anonymous]

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.

[A1Credit]

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