Check Your Car Loan Contract
For various reasons, it is common for people to want to “get out” of their current car loan obligation. Regardless of whether you are leasing or financing your current car, you still have rights and options to exit your contract.
The first step is to review the terms listed on your current contract. Often, there is an exit clause in the fine print that will allow you to return the car with a penalty. It is important to weigh this payment versus what you will actually receive if you sell the car.
Negotiate With The Lender
Communicating with your current lender can help lower your interest rate, refinance your loan, or simply extend your payments over a longer term. By communicating your financial situation to the lender, you often will be able to come out with a positive result. Remember, the lender wants to get paid at least some money on the used car loan or lease, and if you file for bankrupt they often will not recoup this money. It is in their best interest to work with you to come up with a solution given your circumstances.
Put A Value To Your Car
What is your car currently worth? Sites like www.autotrader.ca will help you come up with a current value for your used car. When you have assed the value of your vehicle, remember that it is a guide and that the actual value or offer on the car may be a lower.
Sell Your Car
A common myth is that if you are leasing your car, you are unable to sell it refer to your leasing contract. In almost all cases, a lease has a buyout option allowing you to simply purchase the car and sell it. The best way to do this is to list your car for a slightly higher value you need to pay off your loan. Make sure that you don’t forget to add HST into your purchase cost! For example, if your car buyout is $10,000, the actual buyout price to you is $11,300 (based on a 13% tax rate). You should list your car around $11,900 so that you will have at least a little room to negotiate.
Bring Your Car To Approval Genie
Often, we have clients that would like to get out of their current car loan or lease. We have options to put you into the car you want, while offering great customer service and rates. Based on our relationship with banks and lenders, we regularly get our customers out of the car they don’t want and help them bring home a new vehicle of their dreams. Remember, we are always here to assist you.