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Getting out of a Car Loan

Sometimes, it becomes necessary to get out of a Car Loan Ontario. There are several ways of doing this, which we discuss here. First though, letís explore some reasons why you might want to get out of a car loan in the first place.

You canít afford to make the payments

This is the most common reason people give in wanting to get out of a Car Loan London. It also happens to be the most difficult situation for both yourself, as the owner, and the dealership that sold you the car. Just remember, that as much as you donít want to default on your loan payments, the dealership also doesnít want to repossess your car. Often, they will be open to negotiations, which we will get into later.

It isnít worthwhile to continue payments

This usually happens when someone buys their vehicle from a disreputable dealership. And are given a bad deal. Before buying a car, always check out other dealerships to see what theyíre offering. Often times, you can haggle the salesperson to get a better deal. Remember, the dealership wants your business more than you want one of their cars, so let them work to make you an offer that youíre comfortable with. Also, be sure to check out our online loan calculator to prepare a budget for yourself in advance.

You donít need the car anymore.

While uncommon, as the owner of the car, it is the most preferable of the scenarios listed here. You can afford to make the payments on the car, so finances are not an issue, but you donít want to own it anymore. Maybe you are upgrading to a better car, or may youíre moving to the mountains where you plan to live off of the land, regardless, you need to offload your car.

Now that weíve covered some typical scenarios that lead to getting out of a car loan, we will go over a few methods that will help you to accomplish this seemingly daunting feat. How to Get out of a Car Loan


If you can afford it and you want to keep the car, try to refinance your loan. Many companies let you refinance your loan with no penalties. With a lower interest rate, you might end up paying less for the vehicle than you currently owe.

Negotiate with your lender

Use our online loan calculator to determine what size of a payment you can afford to make each month. Then, approach your lender and ask if they will move around some of your payments.

Sell the car

If you sell the car, you can pass on the remaining loan to the buyer. In a dire situation, you can give the car away with the only condition being that the person you sign it over to will continue to make the payments.

Return Used Car Dealership

If all else fails, return the car to the dealership. You will save on repossession fees such as towing and storage, and the dealership will likely be more inclined to give you a good deal when paying off the remainder of the loan.

Above all else, remember that itís important to be active and take steps before your default on a loan payment. Defaulting on a payment is very bad for your credit and will come back to haunt you the next time you need to make a large purchase.