Can I cancel a car within 24 hours?

I just signed my car loan a few hours ago, but now I think I can't afford it. Can I cancel a car loan the next day?

Sorry to hear that you can’t afford the car you want! However, you may still have some options to remedy the situation.
Unfortunately, you can’t cancel a car loan based solely on buyer’s remorse or failing to do your homework. While many people cite the Federal Trade Commission’s cooling-off period, which allows you to return a purchased good after three days, it doesn’t apply to cars.
However, here are a few situations where you may be able to return the car and cancel the loan:
  • If the dealer misled you into buying a car
  • If the dealer failed to disclose the terms of financing
  • If the car falls under the lemon law
In the case of simply not being able to afford it, the best choice is to tell your lender. They’re often more willing to work with you than you anticipate!
Since you likely won’t be able to cancel the loan, one way to cut your expenses is to shop for new car insurance. The Jerry app makes it quick and easy. 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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