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voluntary repossession

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Definition: A voluntary repossession happens when you turn your car back in to the auto lender rather than going through the process of a physical repossession. The major benefit of a voluntary repossession is that you won't have to face the auto lender's cost of repossessing the vehicle.

Consequences of Voluntary Repossession

The voluntary repossession will go on your credit report and remain for seven years. In addition, the lender can continue to pursue the balance of the loan and may even sue you for the outstanding balance.

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