Car loan

[Rogersk]

What is the best way to get out of a car loan? I need to get my car payments cut in half.

[Kev_UK]

I had a loan for a motorcycle many years ago (HP) and paying off the loan early didn't hardly save me anything.

[AllYourBase]

Have you asked whether the loan can be retructured? The fininace company mihgt be able to extent the payment period to reduce the payments. This wouldbe costlier in the long run but see ou through the tight spot now.
It could also be worth checking whether the car can be handed back to the finance company and you walk away without either a loan nor a car. You oculd then buy an old banger, trasnfer the insuarance and job's a good un'.
As Kev mentioned, clearing it early seldom saves much money sadly.

[Oneeyedvic]

Check to see if it is a Hire Purchase agreement or Loan agreement.

 

If it is a HP, come back and I will explain more.

[andrewlee]

Can't remember the precise details but this happened to my wife a few years ago.   The situation was that the outstanding loan was more than the residual (or at least part exchange)  value of the car.   The dealer told us of an option under the Consumer Credit Act (IIRC) whereby you can return the car to the finance company provided it is still in good condition.   As I say, I cannot remember the exact details, but I think if you have paid more than half of the loan satisfactorily, then this is a perfectly legitimate option.   The details will be contained in the small print of the car loan.   I checked this out with a pal who used to work in the CAB, and it is a perfectly legal thing to do.   It's just not publicised by the dealers and the car loan companies, for obvious reasons.   I suggest you check your small print and give CAB a ring to confirm.