How to Return a Car for Repossession
Turning a car in for repossession is known as a voluntary repossession. The alternative to a voluntary repossession is an involuntary repossession, in which the lender tracks you down to repossess a vehicle. Everyone experiences difficult financial situations from time to time. Sometimes, these situations may require giving up a home or vehicle. Learn more about turning in a car for a voluntary repossession.
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Instructions
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Contact your lienholder to determine if they can help you with your problem. If you are having a temporary financial problem, your lender will likely work with you to resolve the situation. If you are not interested in keeping the vehicle, begin the voluntary repossession process.
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Contact your lender and tell them you are no longer interested in keeping the vehicle. The representative will likely try to persuade you to keep it. Ask the lender what they would like you to do with the car. Many will do nothing until you are at least 90 days past due. Some lenders will ask you to bring it to a specific location, such as a dealership, for them to pick up.
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Remove all of your personal belongings from the vehicle. Make sure everything is in working order and no parts or accessories are missing, if possible. Missing parts may cause the lender to receive less money for the vehicle at auction, increasing the amount of money you may owe them. Remove your license plate to the vehicle prior to dropping it off or turning it in.
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Bring the vehicle to the specified location or wait for the lender to come pick it up. If the lender sends a repo agent to your home, give him the keys and let him take the vehicle. Try not to take your frustrations out on the agent, he has no control over the situation.
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Tips & Warnings
Look for last-ditch ways to keep your vehicle, if possible. Ask family members and friends to help you pay.
Although turning in a car is called a voluntary repossession, it is still a repossession. Whether it is voluntary or involuntary, a repossession will severely damage your credit and make it difficult to qualify for auto loans in the future.
Resources
- Photo Credit Rderijcke:commons.wikimedia.org
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Comments
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tmakaawaawa
Oct 01, 2009
I tried working with the recovery company, but still could not afford the payments.. I tried to return the car, but they refused and said i needed to wait until i was served papers for court.. I dont understand?? I want to return the car but they won't let me!
