Question about turning in a financed car

[Anonymous]

Hello all, so I have a 2012 Nissan Versa, I owe $8000, blue book value is $8500, dealer trade in value is $6500, my question is could I take the car to the dealer and just turn it in and pay the $1500 difference which is $8k i owe minus $6.5k dealer value and be done with the car? Would it affect my credit score by doing that?

[StartingOver10]

Yes your score will be negatively affected if you turn in your vehicle. It is considered a reposession. Why don't you sell it? Selling it will get you more than the trade value.

[Anonymous]

Echo the former sentiment. Try selling it on your own before you just turn it in, as a repo looks terrible on your CR and you may have a hard time getting financing again. 

[Anonymous]

Thanks for the quick answer guys, I might try to pay off the enitre loan by the end of the year and just sell it to someone as you guys said.

[StartingOver10]

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@Anonymous wrote:

Thanks for the quick answer guys, I might try to pay off the enitre loan by the end of the year and just sell it to someone as you guys said.

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You don't necessarily have to pay off the entire vehicle, just pay it down to 'market value' and let the buyer pay off the rest when they purchase. I know this can be tricky, but you can work with your lender to have enough paid down so when the buyer pays their part, you are paid off. I'm sure your lender can walk you through this process. Naturally it is a little bit easier if you have paid it off and have title in hand when you sell it. Your pool of interested buyers increase when you have title in hand.