Can I voluntarily surrender the vehicle if I can't repay the car loan?

[DeArya]

You can voluntarily surrender the vehicle if you can't repay the car loan. However, failing to make loan payments on time constitutes a breach of contract by the borrower, who will be required to pay a penalty. It's important to note that the sum of the remaining loan amount and the vehicle's residual value should not exceed the total loan amount specified in the contract. When the bank auctions the vehicle, the price is usually very low, resulting in significant losses for the borrower. To minimize losses, the borrower can first approach the seller to cover the remaining loan balance, then retrieve the vehicle registration certificate, purchase contract, and vehicle qualification documents from the bank before transferring ownership to the new buyer.