Does Surrendering a Car Hurt Your Credit?

Voluntarily surrendering your vehicle will have a substantially negative impact on your credit scores because it means that you did not fulfill the original loan agreement. When you voluntarily surrender your vehicle, the lender will sell the car to recover as much of the money owed as possible.

Does voluntary car repossession affect your credit?

The simple answer is yes, a voluntary repossession affects your credit score. Even if a borrower does give up their vehicle voluntarily, their credit score still takes a hit.

How long does a voluntary repossession stay on your credit?

If the account in question is closed due to charge off, repossession, or voluntary surrender, it will remain part of your credit report for seven years from the original missed payment that led up to that derogatory status. That date is referred to as the original delinquency date.