Q:

How do I give back a financed car?

A:

Quick Answer

According to Nolo, a legal advice website, you can simply call the dealer and return a financed car, but the lender is under no obligation to release you from the debt owed. The lender may sell the car, but you may still be found liable for the difference between the price the lender gets from reselling the car and the price you agreed to pay.

Know More
How do I give back a financed car?
Credit: fotog Getty Images

Full Answer

When you are having trouble making car payments, the best thing to do is contact the lender and try to work out an arrangement, according to an article on the Fox News Network website. Some lenders allow you to trade down into a less expensive model, while others may extend the loan term, which lowers your monthly payment.

Turning in a financed car is still a better option than having it repossessed. According to Fox News Network, repossessing a car costs the finance company up to $8,000. You may find yourself liable for these charges as well if you are unable to come to an agreement with the financing company. If you are unable to afford your financed vehicle, your lender may allow you to find someone who will assume the payments. However, this can be difficult to accomplish, as the new buyer has to be deemed creditworthy by the financing institution.


Is this answer helpful?

Similar Questions

  • Q:

    What happens when your car gets repossessed and you have a loan on it?

    A:

    Having a vehicle repossessed does not remove the borrower's obligation for the loan. Once the lender repossesses the vehicle and sells it at auction, the finance company also has the right to sue the borrower for the remaining balance on the loan. This balance is called the deficiency balance, according to Nolo.com.

    Full Answer >
    Filed Under:
  • Q:

    What is pre-approval?

    A:

    Pre-approval means a lender is ready to make a customer a loan or extend some other type of credit based on information the customer provided or that the lender retrieved from a credit reporting agency. Pre-approval is not usually a guaranteed approval; instead, it is an initial creditworthiness evaluation.

    Full Answer >
    Filed Under:
  • Q:

    Can you get payday loans without a checking account?

    A:

    While it is possible to get a payday loan without a bank account, chances are that more information is needed in order for the lender to verify the applicant's income, says HowStuffWorks. The lender may charge higher fees for applicants who do not have bank accounts.

    Full Answer >
    Filed Under:
  • Q:

    What happens if you default on a loan from the Payday Loan Store?

    A:

    When a borrower misses a payday loan payment, the lender can charge a fee for the missed payment and make an attempt to collect the debt. The lender may cash the check it has on file, which could trigger the check to bounce at the debtor's bank, states Washington Law Help. Payday lenders may decide to send a defaulted account to a collections agency.

    Full Answer >
    Filed Under:

Explore