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YES!
When you finance a car loan, you are NOT buying a car. You are BORROWING MONEY "secured" by an automobile.
If anything happens to that vehicle, wreck, getting stolen or repossession (whether voluntary or involuntary); You are still liable for the amount of money you financed. This is why banks and other auto financers make you keep the vehicle insured during the term of the loan.
The financer may auction the car for a portion of the remaining balance. If that is done, you are still liable the deficiency balance (whatever is leftover of the original loan). It will show as a "charge off, repossession" on your credit for seven years from the date of last activity.
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∙ 8y ago
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How bad does it affect the cosigner's credit if the borrower has the car voluntarily repossessed?
It has the same effect on the credit.
You returned a car to the dealership and its still showing on your credit?
Of course it is. You voluntarily turn the car in for repossession. It will stay on your credit report for 7 years.
Can you hand a car back to the finance company when you have paid off more than half the amount borrowed?
You can but it will still negatively effect your credit score. It is better to voluntarily turn it over then have it repossesed.
Will it hurt if you voluntarily return my car?
Yes, it can still hurt your credit if you voluntarily return a car. The car company will still put the debt you owe on your credit report if they choose too.
What happens to your credit if you voluntarily have your?
what happens if i voluntarily return my car to the bank due to job loss
Will credit be affected by a co-signer of a car being voluntarily repo?
It shouldn't.
Does trading in a car affect your credit?
Trading in a car does not affect your credit unless you sign a new car loan and get a new car. This may negatively or positively effect your credit.
If yourFather dies and the car loan is in his name can the family turn the car over to the bank and will they be held liable for the remaining balance and will it effect their credit rating?
If your father dies you can turn the car over to the bank without recourse to any other family member.
If you bought a Mazda a month ago and you signed a check for 5000 down but you can't afford the payments can you return the car and what are the implications?
Well, your best option is to voluntarily return the car before a repo order is put out on it. It may reflect on your credit that you defaulted on the loan, but it will be much worse if you establish a history of non-payment and involuntary repossession. Talk to the dealer, bak, or whoever it is who has the lien on the title and see if you can work out another payment arrangement. If you can't keep the car, then voluntarily turn it in.
If you voluntarily let your car be repossessed by the lender do you still have to pay on the loan?
Yes! It will still be listed on your credit report as a voluntary return and you will still be responsible for the cost
If you voluntarily turn in your automobile what happens to you in reference to the balance owed on the vehicle?
You are still legally obligated to pay the balance of the car note regardless.
How do you voluntary turn in your car at the dealership?
Unless the dealership is the one actually financing your car, you don't. You would turn it in to the finance company. You just call them and tell them you wish to voluntarily surrender the vehicle. They'll give you instructions on how to proceed.
