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Step 1
Determine your monetary situation. If you can take a second job to cover the costs of your payment on your car, you may be able to avoid a voluntary repossession. But if you're unable to meet your loan obligations, a voluntary repossession is better for you than an involuntary repossession.
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Step 2
Be aware of what a voluntary car repossession entails. Although you are voluntarily releasing your right, title and interest in your car, a repossession of any type will show up on your credit report.
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Step 3
Contact your lending institution. If you're making payments to a local bank, go in person to speak to the loan officer about your personal situation. If you're financing your car through a national lending institution, contact their customer service line and inform them you're seeking a voluntary repossession against your loan.
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Step 4
Ask about your options concerning a voluntary repossession. The lending institution that holds your loan can opt to keep your vehicle as payment for your debt or they may choose to sell it at a public auction or in a private sale transaction. If the value of your vehicle is less than what you currently owe, you will be responsible for paying the difference.
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Step 5
Make arrangements to surrender your car. To save costs and proceed with the voluntary car repossession, you're going to have to take your car to a designated drop-off location. If the lending institution has to hire a "repo" man to locate your car, that changes your repossession to an involuntary repossession, instead of a voluntary one.
