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How you can successfully cancel a car Bank Loan |Auto

Updated on August 15, 2012
A car bought on loan
A car bought on loan | Source

You just bought a car on loan. You used it for a while but for some reason decided that you don't like the car and want to return it back to the dealer and cancel the car loan. The question is how easily can you do it? Cancelling a car loan seems to be one of the difficulties choice faced by many car buyers today. Quit frankly, cancelling a car loan is a tough choice.Many of the ways to cancel a car loan will end up with the consumer losing money. Hardly ever does one break even. However, a little money lost now is better than thousands of dollars spent on a car that is not worth it.

It is possible to get get out of a car loan but its not easy to do so. In this hub, I will show you how you can get out of a car loan by spending less.

Other resource

A dummies guide to financial planning. All you need to know about financial planning can be found in this book. It is easy to read and follow and above all takes a practical approach in delivering the message.

Call the dealership
Call the dealership | Source

Step # 1. Call the Dealership

This is the most important step you must take without delay. You must call the dealership and make your intention known. Tactfully lay out clearly the reason why you decide to cancel the loan. Don’t make the dealer feel inferior by downgrading the car.

Source

Even if you don’t like the car, at least make an effort to mention certain features of the car you like. For instance, express your admiration how perfectly the rim fit and praise its appealing outlook. This can earn you good customer credibility. Not only that but it can put the dealer at ease to deal with you generously.

After all, this is good business ethics. You can be lucky enough if the dealer appreciates your generosity and decides to slash the amount you are to pay as penalty.


Source

The reason why you should call the dealership quickly is this. The longer you delay the dealer assumes you are using the car. This would definitely make it more difficult to cancel the car loan. If you are quick to call the dealership, and be genuine enough like I said, you can be allowed to cancel the loan easily simply as a matter of returning the money.

Learn about proper phone etiquettes in this video

Step# 2:Call The Bank

Step number two is equally as important as step one. After hanging up from the conversation with the dealership. Immediately call the bank at which you obtained the loan. As stated in step one, treat the phone conversation with courtesy. There are certainly good benefits associated with being polite and professional in communication.

As clearly as possible, explain the situation to the bank. Tell them that the dealership has agreed to take the vehicle back and that the money will be returned to them. Most loans do not have penalties for early payoff, and this is essentially what you will be doing.

Step 3: Pay Up The Accrued Interest

You will be asked to pay the interest that has accrued with the loan for the amount of time you have had after formalities are all set for you to cancel the car loan. Like I said earlier, the longer you hold the car, daily interest keeps building up.

Here’s how it happens. When you purchase a car on loan, the payment is sent to the dealership. But when you return the car, the dealership returns the loan amount to the bank.

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    • Ian Dabasori Hetr profile image
      Author

      Ian D Hetri 5 years ago from Papua New Guinea

      What a surprise. The hub score of this hub was bloody low at 56 yesterday night. The title was without the word "successfully" now see what we have, 86. Amazing how a single word in the title can affect your hub score. Lesson learnt for me.

    • usacartitleloans profile image

      usacartitleloans 3 years ago

      Makes you want to just give your car back and cancellpayments, buy a bike, and get on with life. very informative hub here

    • profile image

      Natalia 2 years ago

      Smart thnnkiig - a clever way of looking at it.

    • Ian Dabasori Hetr profile image
      Author

      Ian D Hetri 2 years ago from Papua New Guinea

      Thanks all wonderful hubbers. Happy hubbing

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