How Do I Cancel an Auto Loan in Indiana?

Obtaining a car loan is a time-consuming task. However, canceling a car loan after you have accepted it is an even harder task. Some of the reasons you may want to cancel your car loan could include the realization that you owe more than the value of your car, a realization that your car is malfunctioning or a change of circumstances, such that you cannot handle the loan payments. In Indiana, you have a period of 18 months in which you can return your car and cancel your loan.

Instructions

Canceling Auto Loans

1

Contact your car dealership if it has been 18 months or less since you purchased the car. According to the Indiana Lemon Law, Section 7, the term of protection in Indiana generally is 18 months. This means that you may return the car within 18 months from the date of purchase.

2

Take the car back to the dealership, showing the people there that you know you are under the protection of the Indiana Lemon Law statutes. The car dealer then must make all necessary arrangements and take your car back.

3

Contact your bank. Let them know the dealership accepted your car back and that they should cancel your loan. Ask for any refunds you may be eligible to receive, and for any requirements or terms you still must meet. Specific requirements vary from bank to bank.

After 18 Months

4

Contact the car dealership if it has been more than 18 months since you purchased the car. Inquire if you can give the car back, cancel the loan and bypass complications that might ensue. According to Autos.com, some car dealers leave room for buyer's remorse.

5

Take the car back if the dealer agrees to cancel your loan after 18 months. When the dealer agrees to take the car back, inform the bank that the car dealership accepted to cancel your loan.

6

Pay the interest that has accrued while the car was in your possession. Also, you must keep in mind that, while the car was with you, its value has been reduced. This might result in additional costs on your part.

Refinancing

7

Try to refinance your current loan if it has been more than 18 months since you purchased your car and the dealer has not accepted to cancel your purchase and your loan.

8

Take your current loan to other lenders or dealerships. Refinancing means working out another contract deal, which would cancel your present car loan and start a new one. This is an option if you feel dissatisfied with your current loan.

9

Choose a refinance deal. In Indiana, one of the refinance dealerships available is Fort Wayne. According to Smaller Car Payments.com, Fort Wayne considers lowering your interest rate if you qualify. In addition, it can lower your interest rate by stretching the amount of time given to pay your current loan.