Will a lender settle with you if you give up your car?

Some will work out a deal, but recognize that they will auction the vehicle and receive far less than it's worth, then they will charge administration fees and anything left will be charged back to you. You'd be better off if you went to the lender, let them know what you're trying to do, then sell the vehicle yourself. You'll be able to get more money that way and if the bank knows that you're planning to pay them back they may actually work with you... but they aren't required. Defaulting on a vehicle loan can be expensive and a financial disaster.