Can I cancel the car loan on my Chevy Silverado?
I was furloughed, so I can't make my payments on my Chevy Silverado. Can I cancel the loan? What should I do?
Sorry that you were furloughed, but hopefully everything gets moving in the right direction!
Unfortunately, you can’t cancel a car loan simply because you can’t make the payments. However, you may have some other options that allow you to get rid of the payments or keep the car at lower monthly installments.
The least attractive option is to hand over the keys to the lender in what’s called a voluntary repossession. A voluntary repossession is just what it sounds like: you take the car to the lender. They’ll sell the Silverado at auction, apply the proceeds to the loan, and you’re left to pay the remaining balance—if there is any. But this is less than ideal as it will have an impact on your credit score.
Alternatively, you can refinance the truck. If you have good credit and positive equity in the truck, you’re a strong candidate for refinancing. By refinancing, you may be able to extend your loan, which would lower your monthly payments.
If you refinance, you still need full coverage car insurance on the loan, but by shopping around, you can save a bit of cash. The Jerry app allows you to compare dozens of quotes from top insurers. The average Jerry user saves $879 per year on car insurance!
More: Autopay auto refinance
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