If you want to end your car finance agreement early, but you can’t afford the final sum of money due, then another option is to refinance your loan.
You could part exchange your car and take out a new finance agreement with a lower interest rate. This will make your monthly payments lower and more affordable. But be aware that you may need to switch lenders to do this, as you usually can’t refinance a loan with your current car finance provider.
However, you’ll need a good credit score to be accepted for a loan at a cheaper rate. Before applying you can use a ree eligibility tool to see what kind of rates are available to you as applying for a new car finance agreement will involve hard credit checks.
Another option is to apply for a personal loan from a bank or other financial institution. Again, you’ll need a good credit score to be accepted for a loan with a competitive interest rate.
If you do take out a loan at a better rate than your car finance deal, you can use the money to end the car finance agreement early. The car is then yours to keep or sell, and the repayments you make are to your loan provider.
However, too many loan applications in a short period of time will affect your credit score, meaning it may prove more costly or difficult to borrow.