Dear Terry, We owe $17,379.40 on our auto loan. We have already purchased a smaller vehicle that gets better gas mileage and has a slightly lower monthly payment. You said to give back the original car to the dealer or the finance company only as a last resort. Help. -- Gregory MerkelDear Gregory, If you simply turn the old vehicle back to the finance company without paying off the balance, it will damage your credit score the same as a repossession. Try selling the old vehicle. Since I assume you owe more than it's worth, try to find the cash to cover the shortfall. Here are this week's reader questions:•Certified cars offer value, reassurance•Can I cancel my car deal?•Do car payments help rebuild credit?•Will returning my car have repercussions?If you have a question for Terry, e-mail him at Driving for Dollars. Save money on your car -- sign up for Bankrate's new weekend Car & Money newsletter. advertisementRelated Links:7 best off-to-college carsNational auto loan averagesWhat changes auto loan rates?Related Articles:All new cars for 20105 steps to 'clunker' dealTake the 'cash back?'
Dear Terry, We owe $17,379.40 on our auto loan. We have already purchased a smaller vehicle that gets better gas mileage and has a slightly lower monthly payment. You said to give back the original car to the dealer or the finance company only as a last resort. Help. -- Gregory Merkel
Dear Gregory, If you simply turn the old vehicle back to the finance company without paying off the balance, it will damage your credit score the same as a repossession. Try selling the old vehicle. Since I assume you owe more than it's worth, try to find the cash to cover the shortfall.
If you have a question for Terry, e-mail him at Driving for Dollars. Save money on your car -- sign up for Bankrate's new weekend Car & Money newsletter.