What's the easiest way to walk away from a car loan?
I don't have the cash to pay for my car loan anymore. What's the easiest way to get out of it or walk away from the loan?
While there’s no easy way to walk away from a car loan, you have a few options to consider. Start off by contacting your lender. You may be able to get a loan deferment (skip certain payments) or a payment plan to suit your needs.
If your lender doesn’t want to accommodate you, your options are a bit more difficult. This may include:
- Voluntarily surrendering your vehicle to the lender
- Selling the car and using the proceeds to pay off the loan or at least pay it down
- Having the lender repossess your vehicle
If you have positive equity in your car, or you owe less than the car is worth, selling it and using the money to pay off your loan is definitely the best outcome. If you don’t and must surrender the vehicle or have it repossessed, you’re going to take a massive hit to your credit, often in the range of 100 points or more. Plus, the repo will stay on your car loan for seven years.
If you work out a deal with your lender, a good place to save some cash to pay for your car loan is by looking at your car insurance. That’s where Jerry can help. Sign up in minutes to shop car insurance rates, and hopefully, you can find a little extra scratch to catch up or pay off your car loan.
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