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Repossession

Will you have bad credit if you return a car to the dealer?

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Wiki User
May 03, 2007 12:08AM

You cannot simply return it to the dealer. It does not work that way. Unless the dealer is the lien holder, he has nothing to do with the car, which you will find out very quickly if you try to just take it back. You bought the car and took out a loan which you promised to repay when you signed a legal contract to repay the loan plus interest. If you are having financial problems, contact the lender and see if you can work something out. The last thing you want to do is have your car repossessed. If you do then the lender will sell your car for whatever he can get, which is usually wholesale. You will then be responsible for the difference in what the lender sells the car for and the balance left on the loan. You will also be accessed repossession fees. And to add insult to injury, your credit will be ruined for 7 years. The very last resort is to allow your car to be repossessed.