If you can\u2019t keep up with your loan payments, you can write a letter to your lender to voluntarily surrender your vehicle.<\/p>\n\n\n\n
Although surrendering your ride still ends with the car back in your lender\u2019s hands, your credit score won\u2019t take such a bad hit and you\u2019ll avoid the bad feelings a repossession creates. But signing a car loan <\/a>agreement always comes with a risk of repossession, so knowing how to surrender a financed car is important.<\/p>\n\n\n\n Car loan expert and car insurance<\/a> broker app Jerry<\/a> is here to walk you through everything you need to know about how to surrender your car to a lender. We’ll also show you how to lower your car expenses using our trusted insurance comparison app<\/a>.<\/p>\n\n\n\n A car loan surrender letter notifies a lender that you can’t keep up with payments and will return the vehicle. By notifying the lender and initiating a voluntary surrender, you can prevent defaulting on the loan and repossession of your vehicle.<\/p>\n\n\n\n Because even a voluntary surrender can hurt your credit score, you should think of a car loan surrender letter as a last resort if you\u2019re unable to keep up with payments. Consider all your other options, first:<\/p>\n\n\n\n Because a car loan surrender letter will negatively impact your credit score, it\u2019s a serious decision. But if it\u2019s your only option, it\u2019s a smart move to prevent forceful repossession.<\/p>\n\n\n\n Here\u2019s how to surrender your car to the bank with a car loan surrender letter:<\/p>\n\n\n\n Once you\u2019ve submitted a surrender letter, call your lender to arrange a safe time and location to drop off your vehicle. If you don\u2019t want to send the letter by mail, you can also drop the letter off along with your vehicle.<\/p>\n\n\n\n A voluntary repossession won\u2019t wipe away your debt\u2014you\u2019ll still be responsible for payments after you surrender your car. Your lender will try to sell the car on your behalf and you\u2019ll be responsible for your outstanding balance minus the sale price. This lower balance is known as the deficiency balance.<\/p>\n\n\n\n The main difference between voluntary surrender and repossession is that voluntary surrender allows you to avoid the chaos and humiliation of a forceful repossession.<\/p>\n\n\n\n When you surrender a financed car, you\u2019ll still be responsible for a deficiency balance\u2014and voluntary repossession will still affect your credit score. But writing a car loan surrender letter shows future lenders that you took responsibility for your debt rather than forcing the lender to take drastic action.<\/p>\n\n\n\n The bottom line: even though it\u2019s not ideal, it\u2019s easier to repair your credit after voluntary surrender than a repossession.<\/p>\n\n\n\n If you need some extra cash to help with your car loan payments, try shopping for cheaper car insurance.<\/p>\n\n\n\n Jerry<\/a> is a trusted insurance comparison app <\/a>that helps you save time and money on all your car expenses, including insurance. Answer just a few easy questions and Jerry will compile quotes that meet your coverage needs from 50+ insurance companies.<\/p>\n\n\n\n Pick the one that best suits you and Jerry will handle all the paperwork, phone calls, and even help you cancel your old policy. The average Jerry user saves $879 per year on car insurance!<\/p>\n\n\n\nWhat is a car loan surrender letter?<\/h2>\n\n\n\n
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How to write a car loan surrender letter<\/h2>\n\n\n\n
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What\u2019s the difference between voluntary surrender and repossession?<\/h2>\n\n\n\n
Save money with cheaper car insurance<\/h2>\n\n\n\n