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'Giving a car back' is the same as repossession

Dear Terry,
I'm having a difficult time making payments on my car. This is the second one I've had and I paid the first one off, but I can't make the payments anymore. I want to give the car back. Will that be possible?
-- Timothy

Dear Timothy,
The last thing you want to do is simply drop off the keys at the lender's office. Effectively, there's no difference in doing that than having the lender repossess the car. You don't say what you owe and what the vehicle's worth. It's always better to sell the car if you can than to simply walk away. You might also try talking to the lender to see if they might renegotiate the terms of the loan or allow you to skip a payment to give you some breathing room. Lenders aren't in the used car business and don't want to take back vehicles.

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'Giving a car back' is the same as repossession

If you have a question for Terry, e-mail him at Driving for Dollars.

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