I was curious how bad it would hurt my credit if i let my vehicle go into default and let it go back to the bank?

Fr_Chuck

How much does it hurt to fall from a two story building, bad but then having alot of late pays does also.

Know here is the issue, if you let it go back, they sell it, and you will still owe the balance.

So lets say you owe 10,000 now, there will be a repo fee, a sales fee on the car, if the car has lets say a 12,000 value, most likely at auction it will bring 4 or 5 thousand, so by time they add the legal fees and sale fees, you will still owe maybe 5 to 6 thousand and don't have a car.

So you will normally find yourself worst off by letting it go back.

Justice Matters

We concur with Father Chuck. Damage to your credit would the least of your problems.

Repossession is a very poor way of trying to extricate one's self from a vehicle contract since it will almost certainly result in additional costs to you (ie. deficiency in price of vehicle sold at auction, bailiff/sheriff fees to effect the repossession, penalties for defaulting, court & legal fees to recover the balance etc).

Some of your other options are as follows:

- Hold on to the car if you can.

- Refinance it if you are able.

- Sell it if you can get a price that will satisfy the balance of the loan.