Results 1 to 5 of 5
  1. #1
    Join Date
    May 2008
    Location
    Los Angeles, CA
    Posts
    97

    Default Does Giving Back a New Car to the Dealer Affect Credit

    My question involves personal finance in the State of: California

    Brother wants to give back his new toyota that he can't afford. Hasn't missed a payment but he wants to give it back cause the payments are hurting in this bad economy.

    Will this affect his credit? If yes, for how long?

  2. #2
    Join Date
    Mar 2007
    Posts
    9,096

    Default Re: Does Giving Back a New Car to the Dealer Affect Credit?

    This is called a voluntary repossession.

    It will destroy his credit for 7 years.

  3. #3
    Join Date
    Jul 2006
    Posts
    5,437

    Default Re: Does Giving Back a New Car to the Dealer Affect Credit?

    It won't affect his credit if he pays it off.

  4. #4
    Join Date
    Jun 2006
    Location
    Arkansas
    Posts
    643

    Default Re: Does Giving Back a New Car to the Dealer Affect Credit?

    Also what he has to realize is that once the car is repossessed, the dealer can sell it at public auction and if it doesn't bring enough to cover what is owed (which is often the case), the purchaser can be sued for the difference which could also include attorney's fees and other costs (called the deficiency).

  5. #5
    Join Date
    Jul 2008
    Posts
    853

    Default Re: Does Giving Back a New Car to the Dealer Affect Credit?

    and even though it is paid off, the credit report will still show that the car was repossessed. From a credit standpoint, it does not matter that it was paid off, nor does it matter that the repo was voluntary.

    1. Sponsored Links
       

Similar Threads

  1. Dealer Wants Used Car Back
    By llmallary in forum Cars and Dealerships
    Replies: 3
    Last Post: 08-25-2009, 11:10 AM
  2. Dealer Wants Car Back, but I Have Already Got the Tag
    By shizzavip in forum Vehicle Registration and Title
    Replies: 4
    Last Post: 06-25-2009, 09:26 PM
  3. Debt Collectors: Suing Credit Card for Giving Credit
    By chicago84 in forum Debts and Collections
    Replies: 9
    Last Post: 04-05-2009, 10:08 PM
  4. Credit Reports: How Will A Conviction Affect My Credit
    By juno106 in forum Personal Finance And Investment Law
    Replies: 1
    Last Post: 06-25-2007, 07:39 PM
  5. Auto Dealer Wants Car Back
    By onehundredkvx in forum Cars and Dealerships
    Replies: 7
    Last Post: 03-29-2007, 06:06 PM
 
 
Sponsored Links

Legal Help, Information and Resources