Is there any way to cancel a car loan contract on my own?

I got cold feet a day after signing a contract for a car loan. Can I cancel the contract? Or am I out of luck?

Answer
Despite some misleading information on the internet, you cannot cancel a car loan because you got cold feet. Some lenders include a cancellation clause in the contract, but this is pretty rare. Here are your other options:
  • Trade in the car for a less expensive model
  • Sell the car on your own and use the cash to help pay off the loan
  • Surrender your car voluntarily to the dealership and pay off any remaining loan balance (keep in mind that this will cause a drop in your credit score)
  • Spend at least a few months (preferably longer) working on paying off the loan, then refinance the loan with a different lender
Whatever you decide to do, remember that you can definitely save money on your car insurance to put toward your car loan. Download the Jerry app to compare rates and find a price that makes sense for your finances. The average Jerry user saves $879 per year on car insurance.
Eric Schad
Answered on Nov 17, 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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