Question:

Returning a financed car?

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bought a honda civic si last year for 23,000 paid off plenty of it already but my father has been threatening to return it to the dealership due to some personal issues between me and him he was the primary buyer and co-signer since i had no credit at the time. i was wondering if him returnig the car would effect my credit as well as his and if so how bad because i am going to basic military training soon and that would mess up plenty

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  1. Your question prompts more ..... Is the loan in his name or yours, or both? Is the car in his name or yours, or both?

    If he is listed as the primary borrower on the loan he is going to suffer the same credit woes that you are. When a car is turned in, or goes thru a 'voluntary repossession' it is sold at auction to the higgest bidder and if the sale price is enough to cover the balance owed you are off the hook. However this is NEVER the case or you would just sell the car yourself. In this scenario the car is sold and the remainder of the loan that is left after the proceeds of the sale are applied are still billed to the BORROWER and Co-Borrower. Then the amount is assigned to a collection agency if not paid in short order. If you are making payments and plan to continue to do so let your father know. If he still wants to turn the car in as the borrower you can ask the lending institution to refinace the vehicle in your name once he relinquishes ownership. I hope that I have helped you some. Good Luck in reference to the auto situation and in your military career I say "Thank You and GOD BLESS"


  2. You would need to have the dealership actually buy it back from you if you didn't want any trouble.

    If you are simply going to give the car back, it is called a 'voluntary repossession' and it will kill your credit (and anyone who co-signed).

    Not sure what you mean when you say you have paid plenty of it off.  If you have been making extra payments and need to get out of it, you might not have any negative equity when you sell it.

  3. Talk to the people you bought the car from and maybe they'll deal with you.

  4. "returning the car" to the dealership is the same as a repossession and it will kill your fathers credit rating.

    If he were smart, he'd sell the car since the SI is highly sought after.  He probably won't lose any money on the deal.   Giving it back to the bank to punish you is shooting himself in the foot.

  5. What do you mean by plenty?  Are we talking about more than half, because cars tend to depreciate as much as 10k after you drive it off the lot.  How much is left on the balance?   Either way if you sell it to a third party, or have the dealership buy it back its going to affect your credit.

    The best thing to do would be to work things out with your dad.

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