How to Get Out of a CNAC Loan: A Comprehensive Guide
How to Get Out of a CNAC Loan: A Comprehensive Guide

How to Get Out of a CNAC Loan: A Comprehensive Guide

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Owning a car is a significant milestone in one’s life. However, sometimes circumstances change, and you may find yourself in a challenging financial situation, struggling to keep up with your CNAC auto loan. If you’re looking for ways to get out of your CNAC loan and regain control of your finances, you’ve come to the right place. In this comprehensive guide, we will explore various strategies and options to help you navigate the process effectively.

Understanding CNAC and its Services

Before delving into the details, let’s take a moment to familiarize ourselves with CNAC. CNAC, which stands for Car Now Acceptance Company, is an auto loan and financial services company that specializes in providing financing to individuals with challenged credit, also known as subprime credit. CNAC works closely with JD Byrider, a sub-prime car dealership, to give those who have been denied by other car financing institutions a chance to build their credit score and get behind the wheel of a car.

CNAC has already helped over 1 million people in the United States get a car, providing a simple and accessible process. Whether through submitting a form on the website, using the free app, or contacting a Byrider dealer directly, CNAC aims to make car ownership a reality for those with subprime credit. However, it’s essential to understand the implications of a CNAC loan and explore alternatives if you find yourself struggling with the terms.

Evaluating Your CNAC Loan

If you currently have a loan with CNAC, chances are you obtained it at the dealership during the car purchase process. You may have used your used vehicle as a trade-in to lower your down payment, and the dealer facilitated the loan for you. However, it’s crucial to assess your loan’s terms and conditions to gain a clear understanding of your financial obligations and explore potential avenues for improvement.

Assessing the Interest Rates

When it comes to CNAC loans, it’s important to note that they primarily target individuals with subprime credit. As a result, the average auto loan interest rate for CNAC borrowers is around 22%, with some variation based on credit scores. It’s essential to review your loan agreement to determine the exact interest rate you’re being charged and evaluate whether it aligns with current market rates. High-interest rates can significantly impact your overall financial health, making it challenging to meet your monthly payments and achieve your long-term financial goals.

Reviewing the Loan Terms

Another critical aspect of evaluating your CNAC loan is to review the specific terms and conditions outlined in your agreement. Pay close attention to the loan duration, monthly payment amount, and any additional fees or charges that may apply. Understanding these details will help you determine whether your current loan is sustainable and if there are any opportunities for improvement or refinancing.

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Exploring Options to Get Out of Your CNAC Loan

Now that you have a better understanding of your CNAC loan, let’s explore various options that can help you get out of your loan and regain control of your finances. Remember, each option comes with its own pros and cons, so consider your unique circumstances before making a decision.

1. Paying off the Loan

The most straightforward way to get out of your CNAC loan is to pay off the balance in full. By doing so, you become the sole owner of the vehicle, eliminating the need for ongoing loan payments. This option is especially beneficial if you have the financial means to make a lump-sum payment. However, it’s crucial to check if your loan agreement includes any prepayment penalties. If there are no penalties, you can make extra principal payments to pay off the loan balance ahead of schedule. Not only does this give you ownership of the car, but it also saves you from paying additional interest over the life of the loan.

2. Refinancing the Loan

If you’re struggling to keep up with your monthly payments or find yourself burdened by a high-interest rate, refinancing your CNAC loan may be a viable solution. Refinancing involves replacing your current loan with a new one that offers better terms, such as a lower interest rate or longer repayment period. This can result in reduced monthly payments, making it more manageable to meet your financial obligations.

To refinance your CNAC loan, consider reaching out to other lenders or working with a refinance broker. Compare the rates and terms offered by different institutions to find the best option for your specific needs. Keep in mind that your credit score plays a significant role in securing favorable refinancing terms, so take steps to improve your credit if necessary.

3. Selling the Car

If you no longer wish to keep the vehicle associated with your CNAC loan, selling it can help you get out of the loan and potentially generate funds to pay off the remaining balance. Before proceeding with the sale, contact your lender to obtain the payoff amount required to satisfy the loan. This information will be crucial when negotiating the sale price.

You have two primary selling options: trading in the car at a dealership or selling it privately. While trading in the car at a dealership may be more convenient, selling it privately often yields a higher sale price. Consider your priorities and the potential financial outcomes before making a decision.

4. Negotiating New Loan Terms

If you’re experiencing temporary financial hardship and are unable to make your monthly payments, consider reaching out to CNAC to negotiate new loan terms. Lenders understand that unexpected circumstances can arise, making it difficult for borrowers to meet their obligations. By proactively contacting CNAC and explaining your situation, you may be able to secure a forbearance or deferment, temporarily pausing your payments or adjusting the terms to better align with your financial capabilities.

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Be prepared to provide documentation and demonstrate your willingness to meet your obligations. Lenders are more likely to work with borrowers who have a history of on-time payments and a genuine commitment to resolving their financial challenges.

5. Trading in the Car for a Less Expensive Option

If you find yourself struggling to afford the monthly payments on your CNAC loan, consider trading in the car for a less expensive vehicle. This option allows you to reduce your financial burden by replacing your current car with a more affordable option. Visit different dealerships to explore trade-in opportunities, and use trusted online resources such as Kelley Blue Book and NADAGuides to estimate the value of your car.

However, it’s important to note that if you owe more on your CNAC loan than the car is worth, you have negative equity. In this case, the remaining balance will be added to the loan for your new car, potentially increasing your overall loan amount. Consider the long-term implications and carefully evaluate whether this option aligns with your financial goals.

What to Avoid with Your CNAC Loan

While it’s crucial to explore various strategies to get out of your CNAC loan, there are certain actions you should avoid to protect your financial well-being.

1. Voluntary Repossession

Voluntarily surrendering your vehicle to the lender, also known as voluntary repossession, may seem like a way out of your CNAC loan. However, it can have severe consequences for your credit score and financial future. While it may save you from paying repossession fees, it’s important to remember that your credit report will reflect the voluntary repossession, negatively impacting your creditworthiness for up to seven years. Consider this option only as a last resort.

2. Defaulting on the Loan

Allowing your CNAC loan to go into default by not making payments or underpaying can lead to repossession by the lender. Defaulting on your loan will have significant repercussions, including a negative impact on your credit report and potential additional fees. Lenders are typically willing to work with borrowers to find alternative solutions, so it’s crucial to contact them before reaching this point.


Getting out of a CNAC loan requires careful evaluation of your financial situation and exploration of various options. Whether you choose to pay off the loan, refinance, sell the car, negotiate new terms, or trade it in for a less expensive option, each option comes with its own pros and cons. It’s important to consider your unique circumstances and long-term financial goals before making a decision. Remember, financial challenges can be temporary, and with the right strategy, you can regain control of your finances and move towards a brighter future.