How to Turn in a Bank-Owned Car for Repo

Having your car repossessed can be a terrible experience. The vehicle can be taken at any time, night or day, and most states allow the agent repossessing your car to come on to your property to do so. This can happen once your auto loan has gone into default. A simpler way to deal with this situation is to turn the vehicle in directly for repossession by working directly with the bank holding the loan. This lets you know when you will lose the vehicle and avoid the stress of wondering when or where it will happen. This also helps you avoid fees associated with the repossession of the car, fees that ultimately are the borrower's responsibility.

Instructions

1

Contact the bank holding the loan and ask to speak with the representative working on your defaulted loan. This could be a department instead of a single person if you are working with a larger bank.

2

Talk to the representative about your loan and the status. Find out the policy of when a vehicle is subject to repossession. Most banks will give time for a person to catch up on the loan before repossessing the car, because they would rather get their money than go through the repossession process.

3

Offer to turn your car in at the bank office or to meet an authorized agent of the bank at an agreed upon location. Banks would rather receive the vehicle directly to avoid the uncertainty of finding and repossessing the vehicle. If the bank does not have an office near you or does not accept cars at their office, they will make arrangements for the company or person that handles their repossessed vehicles to meet with you and receive the vehicle. Schedule a time and place to meet.

4

Remove any personal belongings and make sure all the keys, manuals and other items that belong with the car are in the car before turning it in.

5

Take the car to the scheduled meeting. Make sure you have a ride away from the meeting if it will be needed. Turn over the car and any items that go with the car. The car will be sold at auction or resold by the bank to another buyer. You will still be responsible for any money owed on the car minus any money they receive for the car. If you owe $10,000 and they sell it for $8,000, you will still owe the bank $2,000 plus any repossession fees incurred.