How do you walk away from a car loan?

I just don't have the cash to pay for my car loan anymore. Is there any way that I can walk away from it free and clear?

Answer
Sorry to hear about your car loan and money issues; with everything going on in the world, you are definitely not alone. The good news, though, is that you have several options, even if none of them are walking away free and clear.
If you can’t pay for your loan, consider one of these:
  • Selling your car and using the proceeds to pay off the loan
  • Refinancing the loan to extend the term for lower monthly payments or a lower interest rate
  • Voluntarily surrendering the car
The first two options are better choices, of course, as they won’t hurt your credit score and you’ll be able to retain the vehicle. If you can’t find a way to refinance or you’re upside down on your car loan, then you may have to surrender it.
If you decide to refinance, you should definitely consider looking for car insurance as well. To do this easily, check out the Jerry app—we’ll get you personalized quotes from top-of-the-line providers, so that all you need to do is pick the plan that works best for you.
Best of luck, and hopefully your financial situation improves soon!
Eric Schad
Answered on Nov 22, 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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