How do I get out from under a car loan?

Is there anything I can do to get out from under my car loan? I’m going to be under the loan for a long time if I stay on this payment plan, which makes me a little nervous. What should I do?

Answer
You’re not alone in feeling nervous about a loan or car payment, but thankfully, you have options. Here are a few things that you can do to get out from under a car loan:
  • Pay off the loan. If you’re financially able to pay off the remaining balance on your loan, this is your best bet. Not everyone will be able to do this, but it is the fastest way to dig yourself out of an upside-down car loan.
  • Ask your lender. Your lender wants you to pay off your loan, too! Ask if you can adjust the terms of your loan to pay more towards the principal each month.
  • Refinance your car. If you’re not able to adjust the terms of your current loan, it might be a good idea to find a new one. Refinancing your car could get you a better interest rate, or you could opt for a shorter repayment period to pay off your loan more quickly.
  • Trade-in or sell your car. If you can’t find a way to get on top of your car loan, it might be time to sell or trade-in the vehicle in favor of a cheaper one. Keep in mind that trading in your vehicle may mean you’re still upside-down on your new car loan. However, you could negotiate new loan terms to pay off the difference faster.
If you’re looking to refinance your vehicle, Jerry can help. Jerry compares offers from multiple lenders to make sure you never overpay for your loan.
Liz Jenson
Answered on Dec 03, 2021
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