How do I voluntary surrender my car

When my wife and I had to do this, we merely talked to our lender and discussed the terms of repayment. We went into it knowing full well that it would adversely affect our credit and that the vehicle would sell for less than we owed on it.

Then again, our circumstances were the rare instance where this was the best course of action. We couldn't sell the vehicle ourselves because the 2nd transmission was going. We couldn't afford a 3rd tranny and we didn't feel like paying $300/month for a lawn ornament, so we chose the least of all evils, turned the car over to the bank, and worked out a repayment deal for the post-auction balance.

If you can sell the vehicle for even a fair chunk of what you owe, that is BY FAR a better option that surrendering it.

We had 2 vehicles that were upsidedown and could not be used for a trade-in, the salesman suggested we just let the the vehicles be voluntary surrender them so we did and now the bank says we are responsible for any balance over what the balance of the auction.

G'day Arthur MC,

Thank you for your question. I would talk with consumer counselling services or consumer advice bureau in your area. It might achieve a lower price than if you sold it voluntarily and it will give you a bad credit rating.

You should only do so if the creditor waives the right to recover the balance of the amount owing from you or gives you some other encouragement.

If you wanted to, you could speak with the credit provider but you should understand the consequences of doing so.

I have attached sources for your reference.

Regards

Repossession in Delaware
http://www.lscd.com/Home/PublicWeb/Content/Consumer/Repossession
Ask the Debt Expert
http://www.myvesta.org/column/052404.htm
Consumer Credit Legal Centre
http://www.cclcnsw.org.au/DFT_Project_2002/module_03_Cant_Pay_-_Hardship/cant_pay_your_loan.html
Answerbag
attorneys USA
http://attorneysusa.com/familylawblog/2005/09/voluntary-surrender-of-car-no-such.html

Don't do it!

They will sell it for far less money then you could sell it yourself for.

And you are still responsible for the balance left.

Put a "Enjoy!" sign in the window, unlock the doors, make sure it has a full tank of gas and keep the key in the ignition.