How to Give a Car Back to a Finance Company

Written by melvin richardson
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How to Give a Car Back to a Finance Company
Explore all options before you give your car back to the finance company. (luxury car - model toy car image by alma_sacra from

Sometimes people find themselves in a position where they have to give their car back to the finance company. This process is known as a voluntary repossession. When payments become unaffordable or if more is owed on the automobile than it is worth, consumers will seek out the lender and offer to give them the car back. This can have a damaging affect on your credit. Make sure you receive all documentation from the lender that states it has received the car.

Skill level:
Moderately Easy


  1. 1

    Go through your car to make sure you have removed all of your possessions. Look in the glove compartment and under the sun visor. Remove any important documents or paperwork as well as your other personal belongings.

  2. 2

    Call the lender and speak with a representative in the collection department and let him know you wish to return your car. Work out arrangements for returning the automobile with the lender. The lender provide you with a location to take the car.

  3. 3

    Prepare a document that lists the condition of the car including the mileage. Have the representative that takes possession of the car sign the document so that you have proof that the car was returned. You could also ask the lender to prepare some type of paperwork to confirm you returned the automobile.

  4. 4

    Find out all of the particulars. Ask the lender what will happen. The lender will explain all of the consequences and attempt to sell the automobile at an auction to the highest bidder. You could be responsible for any remaining balance. If you don't pay the outstanding balance there is a chance that a lawsuit could be filed against you.

Tips and warnings

  • A voluntary repossession will have the same damaging affect on your credit as an involuntary repossession. However if you voluntarily turn the car in you can avoid some expenses.
  • Explore all avenues before turning your car into the finance company.
  • See if you can sell the car on your own. If you sell the car and apply the money, you car will not be in default. It will actually be paid ahead depending on how much it is sold for. This will give you a chance to pay the remaining balance.
  • A repossession can remain on your credit report for seven years and hinder you from receiving credit in the future.

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