How to Hand a Car Back to a Finance Company
When you ‘hand a car back’ to a finance company it is more commonly called repossession. You should look at all other options including selling it for what you owe on it to friends or family first. However if you are ‘handing it back’ there is a process involved.
- Talk to the finance company or bank your car is financed with. Tell them that you are no longer able to make the payments and you want to turn it back in. You can either take it to them or have them come and get it.
- Remove everything in the vehicle that belongs to you. Check all areas of the car including the trunk. Just remember that if you are having them pick it up you better do this soon. They can come get the car rather quickly and without notice.
- Take pictures if possible and record the mileage of the car. Try to note the general condition of the automobile, the number of keys returned and if possible get a letter stating whom and when it was picked up or dropped off.
- Do the exchange during business hours if possible and at the financial institution or dealership. Make certain you physically hand over your keys to someone who will sign for them.
- Take a look at the letter you will be receiving from the financial company that says how much they sold your car for. Remember, you gave it back and it is theirs so that can be whatever price they choose to sell it for. If you owed more than they sold it for you still owe the difference. They do have the right to collect that amount from you. Ask and they may even let you work out a payment plan.