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What are some tips for voluntary car repossession?

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Quick Answer

Tips for voluntary car repossession include communicating with the lender about the inability to make payments, discussing the time and place of surrender, and paying fees and the balance due after the lender sells the car, explains About.com. Customers also need to understand the potential impact on their credit scores.

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Full Answer

Communication with lenders is critical because a new payment plan could be possible, according to About.com. A voluntary repossession is just as bad as an involuntary one on a credit report but a loan officer at a local credit union might be more likely to work with a customer he sees voluntarily surrendered his car. In any case, credit scores drop significantly.

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