Before a car is repossessed, you have the option of returning the car to the finance company voluntarily. This could ultimately save you repossession fees and other costs. Remember, you will still owe any outstanding money as per your finance agreement – giving your car back doesn’t allow you to avoid this cost. Lenders will often charge auction fees involved with a car repossession so returing the vehicle can mean these costs can be avoided.
Below are some useful steps you can take and the process for returning a car to a finance company.
- Check your finances to see whether you can remove other costs from your monthly expenditure and maybe avoid repossession. Remember that you will still have to pay monies owed for the car, even if you give it back so maybe trying to hold on to it may be benficial in the long run if cirsumstances change.
- Contact the lender, they often see repossession as being a last resort. Attempt to try and get a more affordable payment plan. Finance companies are fully aware that the current recession means that money is tight for many people. They may be willing to come to a new arrangement with you and this can mean you can keep your car.
Remember to also find out the costs involved you may be charged for giving back the car.
- Get the car cleaned. Pay for a valet if possible from one of the many local car washes. The car will be sold after you give it back so making it look in tip top condition is a priority, it may end up boosting the sales value.
- Repair the car. When a car is repossessed it is sent to auction to be sold. A car with mechanical faults will be spotted by an astute buyer and may result in a low sales price. Obviously this will depend on your finances.
- When ready to return the car, contact the dealer or finance company to arrange for them to come and collect the vehicle or for you to drop it to them. They may require you to sign some paperwork when you surrender the car.
- After they have taken the car, contact the finance company to find out how much the car was sold for. This will give you an indication of how much you will still owe.
For further free information on repossessed cars or car repossession, visit the Repossessed Cars homepage.
