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Asked by belle - 7 years ago
If we were to let a car go back what would be the consequences
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Richard Level 79 / Retired Dentist
Answered 7 years ago
MYTH: Letting a car go back to the auto dealership is acceptable as long as it is done on a voluntary basis.

WRONG! Voluntary repossession is just as derogatory and damaging to a credit report as an involuntary repossession. Lenders are not concerned with whose idea the repossession was; they are concerned with the fact that a creditor had to take back merchandise rather than get paid as agreed. A voluntary repossession is not going to show up on your credit report at voluntary. It is going to be reported as a repossession and any time the word repossession is on your credit report, it’s not a good thing. If you can’t afford to keep the car, sell it! Use the proceeds to pay off the loan on the car. This will not have any negative effect on your credit report and will acutally help in most cases by showing the car loan as paid off. We need to start thinking before we act.
Source: Consumer Law Blog
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