Getting out of your car loan Getting out of a car loan sometimes becomes necessary. There are several ways of doing this, which we discuss here. Here are some reasons why you might want to get out of a car loan.
Can’t Afford to Make Loan Payments Most common reason people want to get out of a Car Loan. Also happens to be the most difficult situation for both yourself, and the dealership you purchased the car. Just remember, that as much as you don’t want to default on your loan payments, the dealership also doesn’t want to repossess your car. Often, they will be open to negotiations, which we will get into later.
Refinancing your Auto Loan This usually happens when someone buys their vehicle from a disreputable dealership. And are given a bad deal. Before buying a car, always check out other dealerships to see what they’re offering. Often times, you can haggle the salesperson to get a better deal. Dealerships wants your business as much as you want one of their cars, so let them work to make you an offer that you’re comfortable with. Also, be sure to check out our online loan calculator to prepare a budget for yourself in advance.
You don’t need the car anymore While uncommon, as the owner of the car, it is the most preferable of the scenarios listed here. You can afford to make the payments on the car, so finances are not an issue, but you don’t want to own it anymore. Maybe you are upgrading to a better car, or may you’re moving to the mountains where you plan to live off of the land, regardless, you need to offload your car. Now that we’ve covered some typical scenarios that lead to getting out of a car loan, we will go over a few methods that will help you to accomplish this seemingly daunting feat. How to Get out of a Car Loan.
Refinancing If you can afford it and you want to keep the car, try to refinancing your loan. Many companies let you refinance your loan with no penalties. With alow interest rate, you might end up paying less for the vehicle than you currently owe.
Negotiate with Lenders Use our online loan calculator to determine what size of a payment you can afford to make each month. Then, approach your lender and ask if they will move around some of your payments.
Sell the car If you sell the car, you can pass on the remaining loan to the buyer. In a dire situation, you can give the car away with the only condition being that the person you sign it over to will continue to make the payments.
Return your car to the dealership If all else fails, return the car to the dealership. You will save on repossession fees such as towing and storage, and the dealership will likely be more inclined to give you a good deal when paying off the remainder of the loan.