How Do You Get Out Of A Car Loan?
One of the most obvious answers to this is to sell your car! Or pay your loan off. It really depends on what reasons you have for wanting to come out of your loan agreement. Of course because you sign a contract, there may be fees and charges associated with terminating your agreement, so best to read up your original agreement before you decide to go ahead with things.
• Transfer your loan. Depending on your bank’s regulations, you may be able to transfer your loan to a trusted party and let them assume your payments. • Lease a new car. Because leases come with significantly lower payments than auto finance loans, it is possible for you to roll your negative equity balance into a new car lease and still lower your monthly payments. By the end of the lease term, you will have paid off the upside-down loan, too. This only works if you make your payment every month and complete the full term of the lease. • Refinance. Negotiate a refinance loan with your lender in order to either drop the interest rate or lower your monthly payments to an amount your wallet is comfortable with. • Sell your car. If you can sell the car for at least what you owe on it, then you will get out of your auto loan without affecting your credit. If you are in an upside-down loan, then you will not be able to sell your car without coming out of pocket to repay the remaining loan
