You need to contact the creditor and ask if they provide a way off of the contract. Your daughter may be able to assume full liability for the note. This is usually done through refinancing. If she's not approved on her own, then you may well be stuck with the obligation to pay on the car note.
The other option would be to sell the car, with the lenders permission, satisfy the note, and then transfer the released title to the new buyer. This route gets a bit more tricky.
A third option is the seller/creditor of the car may agree for you to return the car with a penalty. But expect this route, if approved by the creditor, will still hurt your credit.
www.mdappeals.com - This is not legal advice nor does it create an attorney-client relationship. This is for education and informational purposes only. It is always recommended that you contact an attorney with any concerns as each individual case is unique.
Is your name on the title, the car loan, or both? It is unlikely the auto finance company will let you off the loan, considering your daughter has bad credit and you were the only reason the loan went through in the first place. If you are on the title, you can take possession of the car, since you are an equal owner. I'm sure that will cause all sorts of problems with your daughter, but it's an option. Keep the car and drive it yourself. If all you want is your name off the title to protect yourself from potential liability, then call the auto loan company and see if they have a problem with you not being on the title but remaining liable on the loan, then you and your daughter can transfer the title from the two of you to just her.