Returning a Car advice.

[crazyres]

What is the name of your state? Texas

I am having some financial problems and cannot keep making my car payments and was thinking of returning it. I have my car with Honda Finance and owe about 3 years. I want to avoid a tow truck comming to my house so I was thinking of just dropping off my car at the dealer. Can anybody help?

 

[Ladynred]

Its called a Voluntary Reposession and yes, you can give it back. However, that won't relieve you of the obligation, not completely. They will sell the car at auction for FAR less than what you owe on it. The difference between what they sell it for and what you owe on it is called a deficiency, and you will be liable for it. The bank will tack on repo fees and auction fees and they'll send you a collection notice that they want ALL the money - NOW.

If you don't pay them, they could very well sue you. You will have a repo on your credit reports and if they sue, they'll likely have a judgment too. You're in TX, so that means they can't garnish your wages, but they can take your bank accounts and any other non-exempt assets you may have.

Not a rosey picture - just giving it back isn't that simple

 

[crazyres]

Thanks Ladynred for your advice... I think I'll just butch-up and tightend my budget and take it one day at a time.

 

[JETX]

Even better idea.... sell the car yourself. Even if you have to take a hicky and sell it for less than you owe (making up the difference out of pocket), you will come out WAY ahead of what the lender would have gotten at auction..... meaning your out of pocket is far less.