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Can I back out of a car loan after closing?

I just signed a car loan yesterday, but I'm getting cold feet. Can I back out of the car loan after signing the paperwork?

avatar
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
You most likely can’t back out of your
car loan
.
Many people cite the Federal Trade Commission (FTC) Cooling-Off Law as a way to get out of a car loan if you cancel within 72 hours. However, the FTC law specifically prohibits this in the case of car loans.
Your best bet is to call the dealer and see what they say. 
In most cases, they’ll take some sort of non-refundable deposit and release you from the car loan. This means you could be out $500 to $1,000—but it might be better than owning a car you don’t want.
However, you may find they deny you and you’re stuck with the loan. In this case, you should make the best of a bad situation.
Pay off the loan as fast as possible
 until you can sell the vehicle.
MORE:
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