I recently bought a vehicle. I only have the vehicle for a month and a half, have not yet made any payments towards it. I discovered that the vehicle was in an accident before; the salesman did not tell me this. I spoke to the credit provider and dealership. Neither is willing to assist me. I do not want the vehicle anymore. Can I surrender the vehicle voluntarily and how will it affect me in the long run?
Thank you for your question.
If you voluntarily surrender your vehicle the law states that the bank must sell it for the best price reasonably obtainable. The problem however is the bank’s interpretation of “reasonable”.
In most cases when the car is sold on auction you they will not sell it for the same amount which you still owe the bank, and you end up with a shortfall. You’ll still be liable for this shortfall.
Before the bank can proceed to sell your car, they must first give you a letter indicating the estimated value of the vehicle. This will most likely be close to the book value of the car. If you are not happy with this valuation, you can take back your car and continue payment of the financing.
This matter can get quite technical because you feel that the dealer did not disclose all information. I suggest that you approach an attorney with this to force them to take back the car and refund fees that you have paid. If that is not the route you wish to follow, I would suggest that you sell the car in a private sale as soon as possible.
Hope the information was useful.