Can you return a financed car without getting a penalty?

You cannot return a financed car without a penalty. There will likely be a cancellation fee involved and your credit will be negatively impacted. Also, you'll likely still owe some money on your loan. To avoid the penalties for returning a leased car, consider alternative options such as selling the car, trading it in for a different one, transferring your loan agreement, refinancing your loan, or asking the dealership to adjust your payment schedule.

UPDATED: Nov 28, 2022Fact Checked

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Dorothea Hudson has been professionally writing in many spheres since 2013. She has written on entertainment, insurance, finance, travel, technology, AI, renewable energy, crypto, fundraising, and real estate for many websites. Her work has been published for British retailer Marks and Spencer, Kroger Magazine, the Vision Group, and more. Her passions include writing, music, running, travel, te...

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Written by Dorothea Hudson
Insurance and Finance Writer Dorothea Hudson

Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent Daniel Walker

UPDATED: Nov 28, 2022

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UPDATED: Nov 28, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

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