paying car finance for 3yrs am 4 months in arrears and received termination notice what will happen if i give the car back the finance agreement was for 5 years and the car is now worth approx half what is owed on finance what can they do to me and how much could it cost me ?
car finance termination notice after 3yrs payments out of 5yr contract what can happen if i give the car back?
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Whether they come and get the car or you give it back it will have the same impact on your credit. It will appear as a repossession. The bank who owns the car will sell it, most likely at auction. If they get the money you owe (the 4mos of non payment) then you owe nothing. If they get less, you have to come up with the money, because you still owe it. If they get more, you will get a check for the difference. I hope all of this make sense.
P.S. You owed more than the car is worth? Welcome to the upside down club.
After they sell it they will send you a bill for the remainder. Then they will take you to court and get a judgment and garnish your pay. The repo will be on your credit report making it hard to finance other things like another car. Do whatever you can to catch up with the payments before this happens to you.
How can you give the car back the finance company never owned the car and the dealership doesn't want it and won't pay for it.
Try to sell the car yourself. Whatever the different is between what you get for the car and the balance is, get a loan. If you surrender the car, you'll get next to nothing for what is owed on it.
You can be sued for the balance of the contract.