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Voluntary surrender and car loan

 

Do you know that, after a voluntary surrender, depending on the broker with whom the surrender has been done, you might not be able to get a new car loan right away?

Before surrender a car, make sure to inform yourself on what will be the financial options and the interest rates available for you afterwards. Sometimes, it might worth trying to get a payment arrangement and keep the car.

We often see clients that voluntary surrendered a car and don't have any other option than ask for our services for a new car. By talking to them, we realized that most of them weren't aware of the consequences related to that.

Many thinks that because they voluntary surrendered their car, there are no consequences. There are even some recovery agents that imply that when you sign the document, they take the car and it's done. Unfortunately, it's not accurate because the broker will report the problem to your credit report using the I9 grade, which signifies an account that past in the profit and lost of the loaner. Or I8 grade that signifies a voluntary surrender.

If you surrendered a car with a regular car loaner (1st chance), there will have a 1-year delay to gain access to a new car loan in specialized loaners (2nd chance). But if the only credit history, you had been the car loan that has been surrendered, even if you wait 1-year, you'll only get access to a 3rd chance to credit loans with interest rates of 29.99%. And even then, if your past payment was under 350$, you might be declined because 3rd chance's payments are usually higher than that.

Finally, if you surrendered a car with 3rd chance to credit loaner, the only options left are private loaners.

The best advice I can give you; before surrendering your car, make sure to get the best information on all options you'll get afterwards, most likely if you know you will absolutely need a car. Sometimes, it's better to cut a deal with your loaner to pay them back. On a short, mid, long-term, it's the most economical solution. If you are in any of these situations and you need help, my team will be happy to help you down that road. http://www.pretarabais.com/en/contact

 

Katy Fontaine - September 6th, 2018

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