PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Loans
Car Loan
Compare Car Loans with Jerry
Jerry's Expert Advice
Car Loan Guides
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
"What do I do if I am financing more than I can afford to pay for a car loan? "
"I went to the dealership to get a newer car. I am 19 and have no credit, so my interest rate ended up being 20%. The monthly payments are not bad, but the interest puts me at a total cost of $14,000 for a $9,000 car.
I am regretting the decision now and know that I have to get out of these payments as soon as possible. What should I do?
"
Johnny Puckett · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“This is a tough situation to be in. If your loan does not have a prepayment penalty, you can probably save on your total cost by paying the car loan off early.
If it does have a prepayment penalty, you will have to pay the interest charge you agreed to or risk losing the car to the bank, which will mess up your credit.
After you build your credit, you can try to refinance the car at a lower interest rate to lower your monthly payments, but this will likely only help you save a few dollars each month and it will add to the total cost of the car.
“
View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
