What's the best way to back out of a car loan?

I just bought a new car a week ago and now I have cold feet. Can I back out of the loan? If so, what's the best way to go about it?

Answer
Unfortunately, once you sign a car loan contract, you are legally bound to pay it off until it’s settled (or pass the debt to someone else). You cannot back out of a car loan.
If you’re not a fan of the car, see if you can grow to like it. Find a fun car accessory to give it a touch of personality, or remind yourself of why you bought the car in the first place. Just don’t dwell on what you could have had, because you’re stuck with your current ride—at least for a while.
Try to pay off the loan early to get rid of the car. Double up on monthly payments or make lump-sum contributions until you break even. Once your outstanding balance equals the value of the car, you can sell the car or trade it in at the dealership.
If you want to free up some cash to put toward your car loan, try finding a cheaper car insurance policy. Jerry can help you compare dozens of competitive quotes and switch to a more affordable policy—no paperwork or long phone calls required.
Eric Schad
Answered on Oct 29, 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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