How to Mitigate the Damage on a Bad Car Deal | Tips and Advice | Edmunds

Edmunds senior consumer advice editors Matt Jones and Ron Montoya talk about how shoppers can fix a bad car loan and unwind some other parts of a bad car deal.

Ron: Hi, I'm Ron and this is Matt. We're both senior consumer advice editors at Edmunds.
We had someone reach out to us recently who'd bought a car and was new to the process. He showed the deal to a friend, who pointed out that he paid too much for the car, didn't get enough for his trade-in, said "yes" to some additional products, and topped it off with a high interest rate.

What's your diagnosis?

Matt: Sounds like he has a bad case of buyer's remorse. The chances of him getting his sale price reduced, or getting more money for his trade-in after the deal has been signed, are virtually zero. But it's not all bad news.

He may be able to cancel the extra insurances he purchased and get a pro-rated refund. The refund would be subtracted from his loan, reducing the balance.

After that's done, chances are good he can refinance the car loan and get a better interest rate. Those two things done together can save him some serious money over the life of the loan, and make his car deal a whole lot better.

Ron: That's our tip for today, if you want to know more about what options you have after a car deal has been closed, take a look at our article on Edmunds, "How to Get Out of a Bad Car Loan": https://www.edmunds.com/car-loan/how-to-get-out-of-a-bad-car-loan.html


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