PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
"Can I cancel a car loan? "
I'm starting to have some second doubts about my car loan. Can it be canceled?
Jim Donaher · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“Once you have signed the loan agreement and taken delivery of your car, you generally cannot cancel the loan. The one rare exception is when there is a cancellation clause in the contract. This means borrowers have a small window — usually just a few days — to return their car with no questions asked, though there may be penalties.
Lenders may not call attention to the cancellation clause, so you will need to read your loan agreement to see if it’s there and what its terms are.
While the majority of borrowers cannot cancel their loan, they can opt for one of three ways to get rid of their car to get out of their loan:
- Trade-in: You can try trading in your vehicle for another car. If your ride is worth more than what you owe on it, you could apply the difference toward the purchase of a new vehicle.
- Voluntary repossession: This involves bringing the car back to the seller and breaking your contract. This option will have a major negative impact on your credit, and you will remain responsible for the outstanding balance after the dealer sells your car.
- Private sale: You can sell the car yourself. If you set the price for what you owe on your loan, and the car is new, it may be too expensive for potential buyers to stomach. That’s because depreciation kicked in the moment you drove the car off the lot, so you would be charging a new-car price for a used car. Whatever you get for your vehicle, you can use it to pay down your loan balance. “
View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies