The simplest way to end a car loan is tosell the car and use the proceeds to pay off the loan. Of course, this only works if your car is worth as much, or more, than the balance of your loan. If you sell the car and get less than the loan balance, you will still need to pay off the remainder of your car loan.
People also ask
Can I pay off my car loan early?
Unfortunately, most finance companies operate with early repayment fees. If you鈥檙e in a position to pay off your car loan before you legally have to, then you鈥檒l likely have to pay repayment fees, also known as resettlement fees. These fees normally amount to one or two months鈥?worth of interest that would have otherwise been gained.
How do I end my car loan?
There is no simple way to end your loan. A car loan is a legally binding contract with your car as collateral. In most cases, to terminate a car loan you need to find a way to pay the loan. There are several options for getting your loan paid off.
Can I end a car finance agreement early?
As part of your protections under the Consumer Credit Act, you are able to end a finance agreement early, by means of what鈥檚 referred to as a 鈥榲oluntary termination鈥? The specific voluntary termination options available to you can sometimes vary, depending on what sort of finance you鈥檝e used to buy the car, which have been outlined below.
Can you end a car lease early?
It is possible to end a car lease early, but it鈥檚 much harder to do than on a HP or PCP finance agreement. This is because even if you return the car early, you may still be required to pay off the entire leasing contract.