Giving up a vehicle you owe money on

You should never drive the vehicle without insurance, so if the insurance has expired, have the lender come and pick up the vehicle. Be sure to remove your personal property and the license plate from the vehicle when you give it back since you are responsible for that license plate. Take steps to turn the license plate into your local motor vehicle office or have it properly transferred to another vehicle.

Be aware that a vehicle surrendered to a lender is usually sold for much less than the amount of the debt you owed on the vehicle. The lender can then try to collect the remaining debt from you or even bring a lawsuit against you to collect the difference. In some cases you may be able to make a written agreement with the lender in settlement of the debt remaining after a repossession or the voluntary surrender of your vehicle.