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Will my credit be affected if I can't make my first auto loan payment and I take the car back?
"I just got a car loan, but within a week of getting the loan, I was laid off.
I can't make the car payment anymore. Will it still hurt my credit if I just take the car back?"
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“Yes, it will definitely affect your credit. Just because the repo man didn’t come get the vehicle doesn’t mean you won’t be impacted.
What you want to do now is a “”voluntary repossession.””
Once you return the car, the lender will sell it and put the proceeds toward the loan balance. You’re on the hook to pay the rest.
Instead of doing a voluntary repo, you can also contact your lender and discuss your situation. You might be surprised by how willing they are to help you.”
View full answer
- Gregory R.
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