How to get out of a car loan?

I can’t afford to keep paying my car loan anymore. What can I do? Can you get out of a loan?

Answer
I’m so sorry to hear that, but take comfort in knowing you have options.
To get out of a car loan, the first thing you should do is talk to your lender. If you’re upfront about your situation, they might be able to defer some of your payments. You’ll still have to pay them later, but hopefully, this can kick the ball down the road a bit until you can get back on your feet.
Speaking with your lender prior to missing a payment is the best-case scenario because, otherwise, your car may be repossessed. A repossession would stay on your credit history for seven years.
Alternatively, you could try to refinance your car loan to reduce your monthly bill. Jerry makes it quick and easy. Jerry’s app instantly connects you with top companies and takes into account your specific financial needs to find a loan that best meets those needs.
Next, you can always sell the car. If you’re able to sell it for more than you currently owe, you may even make a small profit this way. Kelley Blue Book is a great resource to get a sense of how much the car is worth.
Worst-case scenario, you can voluntarily surrender the car. This obviously isn’t ideal, but it may preserve your credit to some degree.
Lauren Smith
Answered on Nov 22, 2021
Lauren has written for World Nomads, the Matador Network, Korvia Consulting, and once upon a time Three Fates Games. She graduated from Columbia College of Chicago with a BFA in Creative Writing. After graduating, she moved overseas and lived in South Korea where she spent her free time traveling and going on road trips with friends. She misses the rest stop potatoes and is trying to figure out how to recreate them at home. She's now based outside of Chicago and when she's not writing she spends her free time reading, playing video games, and exploring whenever she can.
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