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Is it possible to cancel a car loan agreement?
I just bought a new car last week and then was fired today. Without my job, I can't afford my car payments. I'd like to return the car to the dealership—is it possible to cancel a car loan agreement?
Shannon Martin · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
I am so sorry to hear about your job and the incredibly terrible timing! Unfortunately, you can’t cancel a loan agreement, but you do have other options, like:
Refinancing your car. Even though you just purchased your vehicle, you might still be able to find a lower interest rate, resulting in a more manageable payment. Try downloading the
Jerry
app. They can help you find lower interest rates and better-priced insurance.
Removing any unnecessary coverages from the loan. If refinancing isn’t an option, try eliminating any extras added to your loan. Add-ons like gap insurance
, towing, and rental car assistance can add up and increase your monthly payments more than you realize.
Selling the car. Go back to the dealership and explain the situation. See if you can sell the vehicle at or very close to the loan amount and get a less expensive car with a lower payment. You can also try to sell it privately for the same value as your loan.No matter which option you choose, time is of the essence! The longer you keep the car, the more it will depreciate in value, which means you could go
upside down on your loan
.View full answer
- Gregory R.
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