If I voluntarily return my car will that destroy my credit?

Question

I can't afford to pay the car note anymore, so can I allow them to repossess it without messing up my credit?

Answer 1

Yes it will, for several years. Keep the car if that's at all possible.

Answer 2

Not only will it destroy your credit, the bank will charge you for their costs for handling it, and they'll charge you the difference between what it's worth and what you owe (that may not be a problem).  And you'll pay it.

So - it's a lot better to sell it yourself.  It's not cheaper for you to pay a banker to sell it.

That only applies if you bought it from a regular dealer.  If you have a "buy here pay here" loan they might just be happy to sell it to somebody else.

Answer 3

If you give up the vehicle, either voluntarily or involuntarily, the result will be the same.  Your credit will take a hit.  If you voluntarily surrender the vehicle, the creditor will not list it as a positive -  you can count on that.Giving the vehicle back to your lender voluntarily may reduce your creditor's expenses in repossessing the automobile and it may reduce the amount you will owe the creditor. BUT, you will still be responsible for paying any deficiency on your loan, and the creditor may still report the repossession on your credit report.

Answer 4

no it will still show as a repo