what is the difference, if any, between repossession and surrendering my...

J

john

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...car? how does this affect my credit? I am moving to Hawaii and it will cost so much money to have it shipped there. I am thinking about surrendering my car back to the bank, which financed the car loan. Is this the same as repossession? How would this affect my credit? I just got the car last year.
 
The amount of money you would have to pay and the damage to your credit would probably be worse than the shipping charges.

Regardless whether it's voluntary or forced repossession, it's a repossession and you will owe the difference between what you owe on the car and what they can get for it at auction (plus any admin fees and the cost to have the car repossessed). Until you pay off this deficit, you will have a non-payment of debt on your credit, which will not come off until 7 years after you pay off the debt.

Besides, you will need a car when you're in Hawaii. And, to buy one there is more expensive than the mainland, because of the cost someone else had to pay to get it over there. And, with that hit on your credit, you wouldn't be able to buy another one on credit, anyway.
 
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