How can I get out of my car loan?
How can I get out of a car loan I can’t afford? I was recently sacked from my job and I don’t have a stable income at the moment. My car loan and car are a big recurring expense I can’t afford anymore.
Man, I’m sorry to hear about that—but don’t stress about the rest!
There are a couple of approaches you can take to get out of your car loan, like selling your car, negotiating with your lender, or refinancing your auto loan.
- Consider selling your car. Unless you are upside down on your loan, meaning the balance is more than your car is worth, you may be able to raise enough funds through the sale of your vehicle to pay it off.
- Negotiate with your lender. Lenders always prepare for the worst—like when their client can’t make their payments anymore. This means your lender might cut you a deal if you talk to them about it. Ask them about financial hardship options.
- Refinance your auto loan. If you haven’t missed a payment yet, this may be a good time to refinance your auto loan. You might just score a lower interest rate than what you’re paying right now. Your balance should be less than the original loan at this point too, so you’ll likely qualify for a lower monthly payment. If not, then try to get a longer repayment term, which will certainly make the loan bill more affordable each month.
You can refinance your car effortlessly through the Jerry app. No matter what your credit score is, Jerry makes refinancing your car easy by comparing quotes from multiple lenders to find a rate that works best for you.
MORE: Bankruptcy car loan
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