How to Do a Voluntary Repo in California

The average consumer shouldn't spend more than 20 percent of his income on all loan payments, including those paid for a vehicle, according to "The Washington Post." But even if you take out the loan planning for this, you can run into unforeseen obstacles and find that you're unable to make your auto payments. California's debtor-friendly laws may help you hold on to the vehicle. Even if you give the car up voluntary, there's not much advantage to you.

Instructions

1

Call your lender. The best time to do this is as soon as you realize you're going to have to miss one payment. If you let the company know early enough, it's possible the company will work with you to help you get back on your feet and keep the automobile.

2

Tell the lender you want to give up the car if it doesn't offer you another option. Ask the lender to send you the payoff value of your loan in writing. If the lender sells your car after repossessing it, it probably won't be for as much as you owe on it. The lender can sue you for the difference, whether you voluntarily surrender the vehicle or not. If this happens, it's called a deficiency judgment, and you'll want confirmation of what the loan balance was at the time of repossession.

3

Arrange for a location where the lender wants you to deliver the car. Avoid having them come to your home to tow it off. The lender can tack the costs of a repo agent's fee onto your loan balance if it comes after you for a deficiency judgment. See if you can return the vehicle to the dealership and leave the keys there to avoid towing charges.

4

Clean all your personal possessions out of your vehicle. If you don't do it before the lender takes possession of the car, it will be much more difficult to collect them later and may even cost you additional money. Don't neglect any important papers you might have kept in the glove compartment, such as your loan documents. You'll need these in the event the lender decides to sue you for any deficiency between your loan balance and what it can sell the car for.

5

Deliver the car to the dealership or wherever you arranged with the lender to leave it. California law dictates that the license plates stay with the car, so don't take them off.