You can get out of a Credit Acceptance loan in several ways, including by paying of🌊f the car or refinancing.

Companies like Credit Acceptance Corp. can seem like a good solution for people who need a car but have trouble getting financing, such as because they have poor credit history. The company offers financing programs that allow car dealers to sell vehicles to consumers with bad credit. However, Credit Acceptance charges double-digit 澳洲幸运5官方开奖结果体彩网:interest rates andཧ additional fees, making it difficult to keep up with the payments.

Learn how to get out of a Credit Acceptance car loan through extra payments, refinancing,𒁃 and othꦦer strategies.

Credit Acceptance Corp. is a publicly traded company (CACC) that co🍬nnects with dealers to provide financing for people with poor credit. Credit Acceptance’s loans may help if you are struggling financially but can’t apply for a loan directly through the company. Instead, you need to find a car from one of the company’s partner dealers and finance through the dealer.

By working with Credit Acceptance, de❀alers are able to approve customers who cannot get approved for financing elsewhere.

About 1.9 million people got used-car loans through Credit Acceptance and its affiliated dealers from Nov. 2, 2015, to April 30, 2021. The company financed more than $4.9 billion in loans in 2020 alone.

Although Credit Acceptance provides financing to consumers who may not qualify for typical auto loans, there is a significant drawback: high rates and fees. Nationally, the average 澳洲幸运5官方开奖结果体彩网:annual percentage rate (APR) on Credit Acceptance loans was about 22%. However, addition♍al fees and charges could drive the total cost even h💮igher.

In 2023, the 澳洲幸运5官方开奖结果体彩网:Consum💛er Financial Prote🌟ction Bureau (CFPB) filed a lawsuit against the company, alleging that Credit Acceptance hid key information about rates and fees from consumers and inflated the values of the used vehicles sold. The CFPB reported that the median markup was more than 50% over the reported dealer cost.

5 St💫rategies to Get Out of a 🐈Credit Acceptance Car Loan

If you’re researching how to get out of a Cꦰredit Acceptance car l🌳oan, you have a few options: 

1. Pay Off the Car

The quickest way to get out of the loan is to pay it off in full. That approach may not be feasible for the majority of borrowers, but you may be able to raise the money necessary to pay off the loan by asking family or friends for help, taking out a personal loan, or appl🐠ying any windfalls of cash you may receive,🌸 such as a tax refund or gift, to the loan. 

2. Make Extra Payments

With such high APRs, Credit Acceptance loans can accrue interest quickly. You can pay off your loan faster and save money by paying more than the minimum𓄧 required. Even small amounts—such as an extra $25 per month—can help.

3. Refinance Your Car Loan

If your credit score or financial situation has improved since you took out your loan through Credit Acceptance, you may be eligible for refinancing. When you 澳洲幸运5官方开奖结果体彩网:refinance a car loan🌜, you take out a new loan and pay off the existing one. With a better credit score or higher income, you might qualify for a loan with a lower interest rate and different terms than you have now.

For example, let’s say you bought a car for $20,000 with an APR of 22%. If you refinanced to a five-year loan with a𒆙n APR of 12%, you would save $6,468 in interest charges.

Leading auto loan refinancing companies like LendingClub and Bank of America are among the lenders that may🌄 provide new auto loans at lower rates than C🎀redit Acceptance. 

4. Trade the Car in for Another Vehicle

If you have established good credit habits and are ready for a new vehicle, another option to get out of a Credit Acceptance loan is to purchase another car and trade in the vehicle you f🥀inanced through Credit Acceptance.

If the car isn’t worth enough to satisfy the existing loan, you can 澳洲幸运5官方开奖结果体彩网:roll the remaining balance into a new loan with a different lender with potentiall🅠y better ter💖ms.

5. Voluntarily Surrender the Vehicle

If you’re desperate to get out of a Credit Acceptance loan, you could consider a 澳洲幸运5官方开奖结果体彩网:voluntary surrender, sometimes referred to as a voluntary repossession. With a voluntary surrender, you inform the lender that you cannot afford the payments and you give the car back. The lender sells the car at auction to 🥀recoup its investment.

However, the car’s sale price may not pay off the existing loan. And even if you return the vehicle and aren’t using it, you would still owe the remaining balance of your car loan. If you can’t afford the payments, the lender can report the surrender as a repossession on your 澳洲幸运5官方开奖结果体彩网:credit report. For this reason, voluntary surrenders are risky and 𒆙should be considered a last resort to get out of a Credit Acceptance loan.

The Bottom Line

There are several steps you can take to get out of a Credit Acceptance car loan, and each strategy has pros and cons to weigh. Among your options: Pay more than the minimum to get rid of the loan faster,ꦆ refinance, trade in the vehicle, or, as a last resort, voluntarily surrender the🐈 vehicle.

If you’re struggling to afford your bills and are worried about collection calls or repossession of a vehicle, consider using a 澳洲幸运5官方开奖结果体彩网:nonprofit credit counseling agency. Credit counselors can help you create a budget, de🍃velop a debt management plan, and nꦚegotiate with your creditors on your behalf. You can find a counselor near you through the U.S. .