What can I do if I can't pay a car loan anymore?

I took out a car loan last year, and it’s been nothing but a nightmare. Since the first month, I’ve struggled to make the payments and had to start dipping into my savings. I simply can’t afford the loan. What should you do if you’re unable to pay a car loan anymore?

Answer
I’m sorry to hear that you are stuck in a car loan that is too difficult for you to repay. Fortunately, you do have options.
Contact the lender immediately to discuss your situation and find a solution. Because it’s in the lender’s best interest, they’ll often work with you and allow you to modify the loan.
Alternatively, you can:
  • Surrender the vehicle or allow it to be repossessed
  • Refinance the loan
  • Sell or trade in the vehicle
Because you’ve struggled to make payments since the beginning, refinancing into a new loan with an interest rate and terms that better match your financial situation may be your best option.
Refinancing your auto loan is a great way to lower your car payments, but finding the right lender can be stressful and time-consuming. Jerry makes it simple–download the app and compare top lenders in minutes. Simply answer a few questions and Jerry will match you with multiple lenders that meet your needs.
Jack Walsh
Answered on Dec 08, 2021
Jack is an insurance specialist and writer living in Buffalo, New York. He has a BA from Union College and worked as an insurance agent with Jerry before joining our content team. He enjoys using data and research to break down complex subjects and convey a story. In his spare time, Jack enjoys cycling, cooking, and exploring Buffalo’s beautiful waterfront.
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