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brokebmw

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I can't afford my vehicle anymore, should I volunteer to turn in my car to the finance company?
I owe 13,000 on it and it's only worth around 8000. My credit score is only 560 right now.

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Top Contributor
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Well, if your credit is already bad, it is an option. Keep in mind though, that turning the car back over to them isn't going to get you completely off the hook. They will most likely send the car to auction where it will bring less than what it is worth and then you will be responsible for the remaining amount owed on the loan. Even say that it brings eight grand at auction, you would still owe them five grand that they could sue you for. Whether they would spend the money to sue you, depends. Sometimes they may just forget about it and not come after you and other times they will sue you in court and get a judgement for the amount owed. Either way your credit will be damaged for seven years (not ruined, but damaged).

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I really don't know what to advise you here, but I guess if you can no longer afford the payment then you cannot afford to keep the car. People going underwater with their auto loans is a very common thing in this country and something needs to be done to put a stop to it. First, lenders need to realize that loans will go underwater on certain vehicles and they should not issue the loans. Secondly, consumers have to be wiser with their buying decisions so they don't get into such a predictament.

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You do have yourself in a bad situation, but remember it is not the end of the world. Many of us have gone through financial and credit problems, it is not permanent and with better decisions your future can be brighter. Learn from this experience and read about credit until you fully understand everything about it and work hard to build a better future.

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