How to Do a Voluntary Auto Reposession

A vehicle repossession is never an easy situation, ultimately effecting your credit report and hindering your ability to purchase another vehicle. However, a voluntary repossession may be your only choice if have a dire financial situation or have exhausted all your options. Unlike normal repossession, voluntary allows the borrower to contact the lender to surrender the car, lessen the fees owed and set up a civil arrangement to resell the car and pay off the balance. It is important to note, however, that it is not an easy fix.

Instructions

1

Talk with your lender or bank about your choices. Explain why you would like to do the repossession.

2

Clear all of your personal possessions out of the car and set up a time and place to give the car back to the lender.

3

Wait for the lender to notify you of intent to sell the car at auction. The car will be sold to the highest bidder. If a balance is left on the car, you, the borrower will be responsible for paying it off.

4

Set up a payment plan with the lender to pay off the remaining balance on the car. Being responsible and communicating with your lender can help you to avoid wage garnishment or legal judgments. Set the payments at a reasonable and doable amount. Don't overextend yourself to pay off the balance. A large payment may be what led you to a repossession in the first place.