I bought this vehicle almost 10 months ago. I had to quit working and can no longer afford the payment even if it were lowered. High insurance is not foreseeable for me either as full coverage has to be on an auto loan. (I have found a used vehicle through a friend for a good deal so transportation does not need to be considered). My question is..if I do a voluntarily repossession of the SUV, what will the dealer do with it? It is in as good of condition as when I bought it with only an additional 2,000 miles on it since purchase. There is nothing different except for the mileage. Will it still be auctioned off or will they put it back for sale on their lot? It is a 2003 model.
I absolutely cannot keep this vehicle. I want to be prepared and believe they should be able to sell it for the same price I bought it for or just barely under it. It is still worth what I bought it for according to NADA.COM except that the "trade-in" value is much lower. I
Thank you for your inquiry.
Let me begin answering your question by telling you the repossession process of a vehicle. First, the Lender, not the dealership, owns the vehicle. Therefore, it is up to the Lender to sell it. The dealership is completely out of the picture once they sell it. Usually, the Lender will bring it to the auction where any dealer can bid on the car. It is rare when the Lender keeps the vehicle to sell to one of their employees, but it does happen.
Whether you have a voluntary repossession or an involuntary repossession, it will stay on your credit report for 10 years.
So, I would highly recommend that you try and sell your car to an individual, or to a dealership that can buy your car without you having to purchase another car. Either way, you will have some negative equity because your vehicle is never valued at the same price it was when you purchased it. So, be prepared to owe some money if you choose to go that route.
Good luck in your decision making process.
〉 Answered on Dec 7th, 2007 by Barbra Einsohn , Customer Relations Manager at David McDavid Honda of Irving