Can i return my car back to the bank/dealer?

Returning a car is called a repossession. A repossession is a serious blow to your credit report and can affect anything you do regarding your financial future. Buying a cell phone becomes more difficult, renting an aprtments is harder, buying anything on credit becomes more difficult and you can forget about financing another car for the next 7 years. There are zero pros for a repossession. None at all. Because giving the car back does not forgive the debt. You borrowed the money, you spent the money, the bank wants their money back. All of it. The repo helps recover some of the money but not all of it and you will be responsible for paying back any remaining balance on that loan. This is what happens. After the car is returned the bank (since they are not a car dealer, they are a lender) will sell the car at an auction. Everyone knows auction prices are low. After the car is sold that money goes to pay off your debt. If it doesn't pay all of the loan off they will come back to you for the balance. Plus you have to add in all the legal fees and any costs associated with the repo and the auction. You pay for everything. If you dont have the cash (they will not accept any form of payment plan) they will take you to court and sue you for the balance. To avoid all of that you need to look at your monthly budget to see if there is any way to avoid the repossession. Sit down and create a monthly budget if you are not already working a budget plan. You do this by writing down every dollar you earn and bring into the house. Your take home pay and any money you make during the month. Then write down all of your bills and everything you spend money on during the month. Don't leave ANYTHING out. Every dollar needs to be accounted for. At the bottom of the budget the income should equal your expenses and you should have a zero balance. Then you need to prioritize the spending with the most important items at the top of the list like food, shelter and utilities. Once you do this you can see where every penny goes and you can probably find the money to make those car payments by eliminating wasteful spending. If there is just no way you are going to make ends meet then you can always sell the car but then there is always that issue with the negative equity. You owe the bank $7500. How much is the car worth if you sold it today? What is the difference between what you owe and what you could sell it for? If that difference is manageable then come up with a plan to close that gap and get that car sold today. You need to avoid the reposession route every way possible.

I also had a car through capital one i couldnt keep up with the payments and i returned the car now on my credit report it is known as a repo

You can't do that. You signed a contract, and the bank will want you to fulfill your side of the deal and make the payments. Your best bet is to sell the car for what you owe on it. That doesn't mean finding someone to "take over the payments", it means selling it outright and paying the money to the bank. If you can't sell it for $7500, then you need to come up with the rest of the money somewhere. You could talk to the bank and see if you can restructure the loan. Maybe you can refinance it for a longer period of time, and lower the payments. But that's not a good option, as depending on how old the car is, you could run the risk of the car dying, but you still owe on it. If that happens, you are still legally obligated to make all the remaining payments on time, even if the car is junk. Another option is to stop making payments altogether, and let the bank repossess it. But they hate to do that, because they will lose even more money that way. But that will leave a really bad mark on your credit, and your interest rates on future loans may go up quite a bit for several years. It may save you a bit of money now, but it'll cost you a lot more in the long run. A good rule of thumb for financing a car is, if you can't pay off a new car in 3-4 years, you can't afford it. If the car is 2-3 years old, don't finance it for more than 3 years max. If it's older than that, don't finance it for more than 1 or 2 years. If you can't make these payments, you need a cheaper car.

I'm sure you know that doing that is a repossession and you'll still owe $7.5k and have no car to drive. They will sell the car for pennies on the dollar and bill you for the rest. If you don't pay, they will sue you and garnish your wages until the loan is paid back. In the meantime, your credit is hosed for the next 7 years. A better solution would be to get a second job and honor your financial obligation.

You lose all the money you have paid thus far and there might be an entry on your credit report on the fact that you failed to keep up with a financial agreement. As the can cannot be sold again as a new car, the dealer has suffered a financial loss and so there might be penalty charges involved

FIRST OF ALL IT WILL EFFECT YOUR CREDIT RATING, WHICH IS VERY IMPORTANT NOWADAYS, SINCE THIS CAN, WILL GET YOU HIGHER INTEREST LOAN RATES, AND IN SOME CASE HIGHER AUTO AND HOME INSURANCE RATES, SOME INSURANCE COMPANIES AND BANKS AND ALL STORES THAT OFFER CREDIT CARDS, ARE USING THIS TO CHARGE HIGHER INTEREST, TRY TO SELL CAR IF POSSIBLE,, BE BETTER FOR YOU, IN THE LONG RUN

be smarter to sel it for 75k than take it back and still owe talk with them about it most are will ing to try and help lower payment they dont want the car they want money for car