If the car EMI has become expensive or a need of purchasing a new car has been arrived, a person will feel the need to get out of the present car loan. The first step is to identify the current value of the car. Then classified ads can be out against the car. Another option can be visiting to the local dealers to sell the car. Once the dealer is ready to buy the car, the car loan can be immediately closed. In that case, the dealer will either pay the whole sum to the car owner or directly pay the loan amount to the bank. If the present value of the car is exceeding the loan value, the owner can enjoy the additional amount of cash after closing the loan. In either case, the owner has to pay more from his pocket to close the auto loan.
How Can you Get Out of a Car Loan
Need more ways to get out of a car loan?
In case the current value of the car is lesser than the existing loan amount, car refinance loan can be a good option for the car owner. The car refinance can be one kind of debt restructuring process, which can reduce the burden of the existing car loan. Remember that to get out of a car loan, a person needs to have a good credit score, so that the banker can easily refinance the loan. Still have doubts regarding the used car refinance loan? Do not worry.
If the car has a used car purchase loan, then also the car can be refinanced from the bankers. This will be termed as the used car refinance loan. In both the cases, the borrower needs to have a good financial credit score. Then only the lenders will have an interest on issuing a refinance loan.
Another process is to transfer the existing loan into a trusted party. In this case, the third party will pay the existing car loan and use the car until all EMI gets closed. However, be aware of any fraud cases. Once the payment schedule gets transferred into ones account, there is a chance of missing the car from the actual ownership. Hence, the transfer needs to be made careful enough.
Apart from this, if the objective is to use a new car, then car leasing could be a better option. Lease value will come up with lesser payments than the auto loans. However, lease cars can never become own car, due to which many riders do not prefer to lease a car. If all these options are not satisfying the current financial need, the user can directly go to the bank and ask for an auction.
Once the lender takes possession on the car, sell it at the auction. In case the value does not meet the outstanding loan value, the lender will charge additional money from the borrower and after closing all the sum, the borrower can get out of a car loan.