Can I cancel a car loan after signing the contract?

I signed my car loan a week ago, but I just found out I have to fix a crack in my home’s foundation—it’s going to cost $10,000. Can I cancel my car loan?

Answer
Sorry to hear about your home! Foundation fixes can be a huge financial burden.
Unfortunately, you can’t cancel your car loan simply because an unexpected expense popped up. The only way you could actually cancel the loan is if it falls under one of these categories:
  • The car violates your state’s lemon law
  • You can prove the dealer intentionally misled you into the purchase of the vehicle
  • The dealer didn’t provide adequate details about the financing of your loan
If you don’t fall under any of these, you still have options! So don’t freak out quite yet. If you need money to fix your foundation, you can either sell the vehicle (provided you have positive equity), or you can attempt to get approval for a home equity loan for the money you need to pay for your foundation.
In the future, you may want to set aside $100 a month or so to pay for home or vehicle maintenance. To free up extra cash for your emergency fund, save money on car insurance with the Jerry app.
In less than 45 seconds, Jerry collects all of your information from your existing insurer. Choose from competitive quotes from 50-plus top insurance companies and Jerry takes care of the rest—securing your new policy and helping you cancel your old one.
Eric Schad
Answered on Dec 03, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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