I have a Dodge Neon 2005. My loan is for $8000. I want to return it to the bank.

M

mirianzhita

New member
What are my consequences? I have a Dodge Neon 2005. My loan is for $8000. For the past 3 months i had two accidents my car is not worth it no more. I want to return it to the bank. What are my consequences?? Besides getting a bad credit.
 
They may not take it back if it's damaged.
If you return the car you won't be able to get credit for another vehicle.
 
First off, the bank might not even accept it. 2nd, no matter what...YOU STILL OWE THE $8,000! So by returning it you are accomplishing nothing! You will have no car, you will still owe the money, PLUS you will have bad credit for 7 years! Where is the benefit?
 
The bank takes back the car and sells it at auction. Lets say it takes them 6 months to sell the car. If its damaged they will fix the car first. So lets say it takes 5,000 to fix the car. They sell it for 2,000 at auction.

So now the bank is into the car 13,000 (5,000 to fix it and 8,000) for what you owe. They can also add on attorneys fees and court fees and lost interest so lets say they are now into it 14,000. Trust me they can add it up fast. So now the bank says they are into this car 14,000 and they sold it for 2,000.

You now owe the bank 12,000 for a deficiency judgment. They dont even have to go to court. Instead of owing the bank 8,000 for a car you have, you now owe them 12,000 for a car you dont. This happens all the time. Once they have that judgment the law allows them to garnish your wages, take it out of your bank accounts etc. That 8,000 doesnt go away, it will skyrocket.
 
Auto finance is what I do for a living and a repossession is one of the worst things that can show on a persons credit report.

What will happen is they will sell the vehicle for what ever they can get and then sue you for the balance due plus all fees which will amount to several thousand dollars and if you don't pay they will take you to court get a judgment and at that point they can attach bank accounts, garnish wages (if your State allows it) and file liens on any other real property you may own like cars, boats, land and homes.

All of this will show on your credit for the next 7-years making it very hard to get approved for any other type of loan without making massive down payments, paying huge fees and State maximum interest rates.
 
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