Getting a financed car is popular. You will have a convenient payment method to own a car.
You can have a lot of advantages. But what if you need to change your car when you are still paying for your financed car?
When you cannot pay for the car anymore, you will need to return the car. You should talk to the dealer to know what to do.
If you are just having a hard time paying for a while, the dealer can let you pass payments. The amount will be added at the end of the loan term.
Yes, it is possible to return a finance vehicle to the dealership. But every dealership has return policies and rules.
There is a limit of time in returning the car. Sometimes, the dealer will allow you to return the car to avoid repossession.
You have to keep in mind the value depreciation of the car. It will not be worth much after a few months of ownership.
Depreciation is something to be considered when returning a car. Because you will have to pay the difference in value.
Can You Return a Car (This is How)
What options do you have?
The average mid-size car costs $25,000. The average SUV costs $35,000.
The average car price is $40,000. Because of this, you should ensure that you have the right vehicle purchase.
70% of people who purchase vehicles take financing. Only 30% take a lease.
The dealership is a good business, having the automotive industry contributing a 2.7% of the gross domestic product of the United States. 60% of buyers search online in purchasing vehicles,
But sometimes, we are not content with our cars. We may find ourselves wanting to return it.
There are many reasons why someone would want to return his or her financed car. Some of the reasons are the following:
Wanting an Upgrade
Having a car is one of the best things in the world. That is why we want our car to be perfect.
If we find that our current car is not enough for our needs, we may want to have a new one. For this reason, we will want to return a financed car.
Having a Complaint
Another reason is when you are ripped off. You should talk with the dealership manager in times like this.
Bring your documentation and corroborate with the manager. You should explain how you have been wronged.
Go to the Better Business Bureau. File your complaint.
Get an attorney to sue the dealership. Leave a bad review.
Payments are Too High
It is up to the car dealers to allow you to return the car. Sometimes, you can exchange it for something more affordable.
Talk to the salesperson or manager. You have to explain that the payments are too high for you.
At first, they will ask you why you have taken the car loan in the first place. If you cannot return the car, you can do refinancing with the auto loan to have a lower interest.
Not Running Properly
If you found out that the car is not running properly, it is one reason to return the car. You should have documentation that it has mechanical problems.
Some dealerships have a return policy. This is a great opportunity to return the car if you want.
Through the return policy, you can get a refund. Or you can exchange the car for a better one.
How Car Dealerships Rip You Off (The Truth)
How to Refinance a Car Loan (The Right Way)
Options in Returning a Financed Car
It is not simple to return a car. But you may have a few options that you can do.
Sell the Financed Vehicle
You can sell the car to a private party. You can get the money to pay for the auto loan.
Roll Over the Auto Loan
You can accept loan rollovers. You will add the remaining balance of your car loan to the next one
You can voluntarily surrender the car to the dealership.
After one year, you can refinance your auto loan. This way, you can keep your car.
Trade-In the Financed Vehicle
You can ask the dealership for a trade. You can even gain tax-saving benefits.
Get Someone Else to Take Over the Payment
You can get somebody to assume the loan payments for you. Advertise the car in marketplaces like Craigslist and eBay.
How to Return a Financed Car?
Okay, you want to return your car. What should you do?
Take the following as a guide:
1. Review the Auto Contract
Read the sales agreement. You can cancel it according to the terms that are in it.
2. Notify the Dealership
Let the dealership and finance company know. Mention your intention to bring back the car.
3. Return the Car
You must return the car in good condition. Damages will make a return policy not possible.
4. Pay the Interest
Pay the interest on the auto loan. The interest payment is required for canceling the auto purchase.
5. Have Voluntary Repossession
If you cannot cancel the car purchase, you can opt for repossession. You can voluntarily surrender the vehicle.
Here is a video that you can refer to if you will have a repossession.
What is a Voluntary Surrender?
Voluntary surrender is when you return your car before finishing paying the loan.
What is the Return Policy on Car Dealerships?
The return policy in a car dealership is typically within 30 days. You must return the used car within this time.
How Can I Return a Used Car?
To return a used car, be sure that you have all the paperwork on hand. These are the papers that you get when you have bought the car.
If you have all the documents, the process will be easier. But be sure that the car is in good condition.
What is Car Repossession?
Car repossession is reclaiming your ownership of the car. This happens when you fail to have an on-time payment.
How Does Repossession Work?
If you miss a payment for your car, the repossession process starts. The bank will get your vehicle without notice.
They will retrieve the property through a towing service. After that, you have to reclaim your car.
What is a Voluntary Repossession?
A voluntary repossession is when you voluntarily return your car to the dealer. This is because you are unable to make payments.
Is Wage Garnishment Possible If I Fail to Make Payments?
Yes, it is possible. The larger your debt, the more the dealer will take legal action.
This can include wage garnishment.
What is Car Depreciation?
Car depreciation is the decrease in the value of your car. Because you have been using it, its value will lessen as you return it to the dealer.