Users' questions

What happens if I return my car to the dealer?

What happens if I return my car to the dealer?

You can return the vehicle to the dealer, but you will still owe the balance remaining on the lease. You also lose the upfront money paid for the car and pay an additional recapture fee. A better option is to find someone who will be willing to take over the balance of payments for your car.

What happens if you change your mind about buying a car?

You simply changed your mind about the purchase. Trading the vehicle in for a less expensive car is something to consider if you still need a car but can’t afford the one you have. You’d still have a car loan payment. But if the vehicle is less expensive, the new payment may be more affordable for your budget than the previous one.

How much does it cost to return a car that has depreciated?

If your car has depreciated to $20,000 and you still owe $25,000 on it, for example, you will have to pay the difference of $5,000—even if your dealer agrees to the return. So that’s something to consider when weighing whether returning a car is the best option.

What to do if car dealer won’t work with you?

If the dealership refuses to work with you, consider filing a complaint with the Better Business Bureau, your state attorney general’s office, the Federal Trade Commission, and/or the Consumer Financial Protection Bureau. If you simply can’t afford your car payments any longer, you could ask the dealer to agree to voluntary repossession.

What happens to your car loan if you lose your job?

With the proper planning, a job loss doesn’t have to lead to a car loan default. Like the saying “hope for the best, prepare for the worst,” losing a job isn’t something anyone wants to think about, but it’s something everyone should be prepared for if they have an auto loan.

What happens when you return a car to the dealer?

As soon as you drive off the lot, you already owe more on the loan than your car is worth. When you find yourself unable to make your car payments and ultimately choose to return the vehicle to the dealer (which is known as voluntary repossession), the dealer usually turns around and attempts to re-sell the vehicle.

What to do if the car you just bought is wrong?

If something is wrong with the car you just bought, work with the dealership to get it repaired rather than trying to force the dealer to take the car back. You might wish you could void your purchase contract and simply give the car back to the dealer.

What happens if I give my car back?

Giving the car back – Returning a vehicle that you feel you can no longer afford may seem like the right thing to do, but, in reality, you’re just speeding up the repossession process. The act of returning a car you can no longer afford before your contract is up is called voluntary repossession, and it affects your credit just like a normal repo.