How to Get Out of a New Car Contractby J. Johnson
You have a few options when it comes to getting out of a new car contract. Once the new car smell wears off and reality sets in, you may realize that the new car you just purchased isn't affordable or practical for your lifestyle. You most likely signed a contract when you purchased the car. This contract typically includes a finance plan and making monthly payments for the car.
Visit the dealership where you purchased the new car, and ask if you can return it. Understand that while some dealerships will take back the vehicle, you will most likely still be responsible for making the payments. Early return penalties may also apply.
Ask the dealership if you can forgo making payments on the first car if you buy a new one from them. They may be willing to take this option, especially if the new vehicle you choose is more expensive. In this case, there may be penalties for getting out of the contract, but you won't have to make payments on two vehicles.
Request that your new car be repossessed by the finance company or lender that loaned you the money to buy the car. This option should only be implemented in extreme situations. You most likely won't be charged any fees and won't have to make any more payments, but it can cause serious damage to your credit score and have a negative effect on your options for borrowing money in the future.
Sell the car. If the dealership won't let you out of the contract or the other options seem unappealing or are not affordable, you can always sell your car to a third party. At which point, they will take over making the payments. Since the car is new and has many payments, you may not get a lot of money or any money up front, but you will be able to get out of the contract.
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