Practical first stepsCar loan
Behind on Car Payments: What Surrendering a Car Does and Doesn't Fix
A Salt Lake City report on rising car loan delinquencies and more borrowers handing their cars back. A credit union lending executive explains why surrender doesn't end the debt and why calling early matters.
Video by KUTV 2 News Salt Lake CityPublished December 17, 2025Breakdown updated September 15, 2026
“More people behind on car payments, many surrender cars before they get repossessed” by KUTV 2 News Salt Lake City. We didn't make this video; it loads from YouTube when you press play.
What the video covers
KUTV reports that more people are falling behind on car loans, and a Utah credit union is seeing more members voluntarily surrender their vehicles before repossession. A credit union lending executive and the owner of a local repossession company describe what they're seeing.
The steps it walks through
- 1
The credit union reaches out to members a few days after a missed car payment to talk through options.
- 2
Options it may offer include interest-only payments and, occasionally, skipping a payment for a short-term setback.
- 3
Some borrowers who have run out of options hand the car back, but they're still responsible for the remaining balance.
- 4
The lender's advice is to contact the lender early, before a loan falls 30 days behind.
What you can learn from it
Handing the car back doesn't erase the loan
The FTC explains that the gap between what's owed, plus certain expenses, and what the lender gets for the car is called a deficiency, and in most states the lender can sue to collect it.
Surrender can still show on credit reports
According to the FTC, even with a voluntary repossession, the creditor may still report the late payments or the repossession.
Call the lender as soon as trouble starts
The CFPB suggests contacting the lender or servicer as soon as possible to ask about options such as an affordable payment plan, a new due date or forbearance.
Get any new arrangement in writing
The CFPB recommends getting any agreement with the lender in writing and asking how it would affect the borrower's credit report.
In their words
“Call your financial institution early. Don't let it get even 30 days behind.”
Keep in mind
The hardship options described are one credit union's policies, and other lenders may offer different options or none. The segment explains the problem more than a specific way out.
Common questions
Do you still owe money after a voluntary repossession?
Often, yes. The FTC says the deficiency is the difference between what's owed on the contract, plus certain expenses, and what the lender gets from selling the car, and in most states the lender can sue to collect it.
Source: consumer.ftc.govDoes voluntarily surrendering a car hurt credit?
It can. The FTC says that even with a voluntary repossession, the creditor may still put the late payments or the repossession on a credit report.
Source: consumer.ftc.govWhat should someone do if they can't make a car payment?
The CFPB suggests contacting the lender or servicer as soon as possible to ask about options like an affordable payment plan, a new due date or forbearance, and getting any agreement in writing.
Source: consumerfinance.govSources
By DebtCheckUSAEditorial Team. This is our summary of a video we didn't make, and nobody paid us to include it. It's one person's experience, not financial, tax or legal advice. Advertiser disclosure
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