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Defaulting on car loan

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shranger98

Junior Member
What is the name of your state? Texas

I got a new truck with a loan two months ago and absolutely cannot make the payments. How do I tell the finance company this? Will I have a repossesion on my credit report now even though this is a voluntary repossession? I tried to give it back to the dealer but they don't own it, the finance company does.:confused:
 


divgradcurl

Senior Member
How do I tell the finance company this?
Call them up? I'm not trying to be flippant, it's just that there isn't any easy way to do this, and you are going to take a financial hit any way you look at it, unless you can somehow sell the car for more than what you currently owe on it.

Will I have a repossesion on my credit report now even though this is a voluntary repossession?
Yes. And then they will try and sell the truck to someone else. And you will be responsible for the difference between what you currently owe, and what they can sell the truck for -- plus costs associated with the transaction.

Call them up, see if you can work something out with them -- maybe they can spread the payments out over a longer period so that your monthly payments are reduced, who knows.
 

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