1. You will lose your car. This is the most important thing to understand about voluntary repossession. Once you give your car back to the lender, they will take ownership of it and you will no longer be able to drive it.
2. You will still owe the lender money. Even though you have given up your car, you will still owe the lender the balance of your loan. This means that you will need to continue making payments, even though you no longer have the car.
3. Your credit score will be affected. Voluntary repossession will hurt your credit score, which can make it difficult to get a loan in the future. This is because lenders see voluntary repossession as a sign that you are not a reliable borrower.
4. You may have to pay repossession fees. In addition to owing the balance of your loan, you may also have to pay repossession fees. These fees can vary depending on the lender, but they can be expensive.
5. You may have to pay for any repairs that were not covered by your warranty. If you voluntarily repossess your car before the repairs are complete, you may have to pay for any repairs that were not covered by your warranty. This can be a significant expense.
Before you decide to voluntarily repossess your car, it is important to weigh the pros and cons carefully. You should only do this if you are absolutely sure that you cannot afford to make the repairs or continue making the payments. If you are unsure of what to do, you should speak to a financial advisor or an attorney.
