What happens when you can't make your car payment and you have to give the car back?

You don't want to give the car back. Them taking it (a repo) is just the same as you giving it back (a voluntary repo). Both are repo's on your credit report.

Besides that, they will sell the car at a dealer auction for a lot less than what its worth and SUE YOU FOR THE DIFFERENCE. If you can't pay for the car, sell it yourself. Cough up (by borrowing somewhere else) the amount you are upside down on -- it will be lower than what they will sell the car for at the auction (plus the legal fees and whatever else).

Giving the car back doesn't make the debt go away

well i work in a dealership and what normally happens is the bank u leased or financed thru will auction off ur vehicle and the balance u will be responsible for. For example if they sell ur car for 5,000.00 and the worth is 15,000.00 they will make u responsible for 10,000.00. Ur better off having someone legally take over the payments.... Plus this will show on ur credit report and will damage ur credit score.

Don't do it!!! Hide the car... try to sell it, something!! I am screwed right now because they repoed a car of mine and sold it for $6k less than what I owed... so guess how much I have to pay for a car I don't have... $6k!!!!!!! The best option would be to try and sell it... dont make the mistake I did

You will have a bad credit report

Depends on what your contract states. Regardless, it will likely be reported on your credit file as a delinquent account, and you may have trouble in the near future applying for another car loan.

it's called a voluntary repo and you can expect a big bill from the loan company after they tack on $1000 is repo fees and sell the car at a big loss at auction - you might still wind owing them almost as much as when you had the car, but you won't have the car - same thing forced me into bankruptcy years ago

There are two ways to handle this. You can wait for the company to hire a repossession agent who will obtain the car without your permission. You can also do what is called a voluntary repossession. The latter is your better option. The car company will then try to sell the car. They will deduct what you owe from the sale price, plus fees, and if there is a negative balance you are responsible for this amount. This is called a deficiency balance.

Before you get to the point of giving the car back you should call your lender and ask them if they can give you a deferment on your loan. Some but not all lenders will do this..it helps if you are current or near current when asking this. If you are not current they will not repo your car right away. Let's face it they want their money not your car and they know if they repo their car they won't get their money and will have to chase you down for the outstanding balance after they auction it off. Banks are not in the repo business they are in the money business. They will take it if they must but will work with you if you talk to them and keep open and HONEST communications. Buy here/ Pay here lots make their money off of selling cars. These people are far more likely to repo your car after becoming 30 days delinquent than any other lender.

It goes on your credit report as voluntary repossession. It might depend on the company your financing with, but it happened to my boyfriend.

it depends slightly on whether it was voluntary or a forced repo. The real difference is $500-1500 in repo costs and the embarrassment of having your car yanked out of your drive way and leaving tires marks out into the street for weeks. The effect on your credit as you can expect is pretty hefty. it is not possible to attach a definite amount that your FICO score will be hit for, because several factors are taken into account. You can expect a short term hit of 100 points on average, but hits as high as 200 points. Your car will be sold at auction to the highest bidder (more than likely another car dealer). You will then owe a deficiency balance, which is the amount you owed with fees (late fees, repo fees, attorney fees in some states, and auction fees) minus the amount your car sold for, not what it was worth. So if it is a bad day at the auction and your car that you owe $15000 only sells for $5000 you now owe $10,000 in a deficiency balance, that they bank will pursue.

Let's talk about options. First, can you sell or trade your car in for something you can afford? Is your situation temporary, meaning you can still afford the car, just fell behind a couple of payments maybe because you lost your job, but have a new one now. If it is temporary call the bank and ask for a deferment. This means they take your past due payments and move them to the end of your loan. it brings you current as long as you can still afford the payment this is a great option, because banks do not want the car back. You will have to pay a deferment fee, which is usually just the interested and you will end up paying a little more interest on the life of the loan, but a much better option than a repo.

Depending on how long ago you bought the car you may be able to go back to the original dealer and ask for help. Ask to trade in for a lesser priced vehicle, lower payment etc. Card dealers are sometimes charged back a percentage of a car deal if it is a repo within a certain period of time, so they do not want that to happen. Also, if a dealer has too many repo's with a certain bank the bank will choose to stop doing business with that dealer. You can see the benefit to the dealer to help you out.

Worst case scenario is the repo. If this happens try to learn from it and buy a lesser priced vehicle that is more in line with your budget the next time. Good luck and I hope you can work this out.

When your car is repossessed they will sell your car and you will owe the difference between what the car was worth and what you owe.

If they sell the car for 8,000 and you owe 9,500 you will have to come up with 1,500.

You're stuck walking everywhere.

Also, your credit takes a sizable hit.

Easy, you don't have a car no more!!

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