Vehicle Reposession

[Christinasklan]

How does it affect your credit if you surrender a vehicle you can not afford?

[JoeyDebtExpert]

It will affect your credit scores as well as your ability to obtain credit very much. The vehicle will list it as late until the repo is finalized. The creditor sells the vehicle at auction; usually at a fraction of what is worth and sells an inflated deficiency balance to a debt collector that usually inflates it further while trying to collect. The account is reported as charged off or reposession and eventually a new item usually appears as a collection account. If the collector or the original creditor sues and wins, another item will appear under public records. There are 3 bureaus this info will usually appear on Equifax, TransUnion and Experian. My best recommendation would be to sell the vehicle to someone who is willing to take over payments or just outright to someone else even if its for less then the value. You would have to come up with the remainder but I can assure you it will be far less if you sell the vehicle yourself instead of the bank. You can also call the finance company and ask them to work out your payment over a longer term. Or you could refinance your existing loan over a longer term. Who knows, if you get a better rate your payments may be affordable??? Anyway, that’s my immediate reaction to your question.