How do I get out of a bad car loan deal?


Bad car deals mostly refer to car loans with very high interest rates. Quite a lot of people do not think twice before taking a loan and simply go for the showroom or dealership provided car loan.

In many cases, the borrower would later realize the high rate of interest that they are currently paying and are eager to get out of their loans. Fortunately, it is still possible to do something to repair the damage.

What can you do if you are in a bad car deal?

Borrowers in a bad car deal can simply follow some of the tips given below to get out of the loan:

* The first thing you will have to do is to find the current value of your car or what is known as NADA. This figure would be derived based on several different factors but there are quite a lot of online tools available for calculations. Your trade in value can be decided based on this figure.

* You can think about selling off your car privately to get out of the deal. However, you will have to know about your current car condition and what you can expect from a deal when you sell the car off.

* Next, you can contact a car dealer and try to negotiate a deal. A trade in pay off would be a good arrangement for the vehicle. This would be easier if you are currently in the position to purchase a new car in exchange of your old one. With an arrangement of this nature, the dealership would pay off your existing balance on the bad deal. If you do find a good rate of interest, this would be the best possible option for you.

* If you cannot or are not interested in purchasing a new car, you can also ask a dealer if they would be able to purchase your car in cash. If there is not much balance remaining on your car, then the chances of getting a deal would be higher.

* The only other option remaining is to find a private purchaser who is willing to purchase the car and take over the remaining car loan installments from you.