Not Giving It Up
Kristin is considering doing a voluntary repossession on her car. Dave wants her to consider something else.
QUESTION: Kristin asks what happens if you just turn your car back into the dealership. Dave tells her what happens in that situation, called a voluntary repossession.
ANSWER: When you do a voluntary repossession, you turn the car back in to the dealership, and then they sell it for wholesale or less and sue you for the difference of whatever it doesn’t bring. That will amount to a lot of money and you’ll have your credit severely damaged. Don’t do that. Sell the car for as much as you can and get a loan for the difference. That way, you control the sales price and don’t trash your credit in the process.