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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?

avatar
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
You usually can’t cancel a
car loan
simply because you got cold feet. Some lenders include a cancellation clause in the contract, but this is pretty rare. Some dealerships may also have return policies for a limited time following your vehicle purchase.
If you’re unable to cancel your car loan contract on your own, here are other options you could consider: 
  • 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)
  • Contact your car loan lender and discuss renegotiation options
  • Spend at least a few months (preferably longer) working on paying off the loan, then refinance the loan with a different lender
If the reason you have cold feet about your new car is that it’s turned out to be a lemon, or you suspect you were the victim of unfair business practices, you have some additional options:
  • Review your state’s
    lemon laws
  • Consider contacting your state’s attorney general or the appropriate consumer protection agency depending on the violation that took place
View full answer 
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