Auto Loans - reaffirm?

[Walnut]

We are inthe 60-day club and we have two vehicles, both upside down. One was reaffirmed with Honda Finance - the other we did not receive anything from our lender or attorney.. Creditor is National City Bank. Is it worth bothering to go with a 722 redemption for the second non-reaffirmed car? Seems silly to pay the negative equity on a discharged debt although we do want to keep the car. The other option is to continue to pay until discharge, let the bank come get it and explore options to buy another vehicle. What are your experiences? Anyone used 722 redemption? Is it a good idea?

[jal1129]

My lawyer recommended redeeming my car which has negative $5,000 equity. I called about 722 and our payments would have been about $30 a month more than what we are paying now. Right now we have a 4% interest. So if you have a low interest rate, 722 might not be right for you.

[Walnut]

I really don't know the interest rate but I would guess it is above 10%.

[manglicmot]

I signed my paperwork and the attorney told me my case would be filed when he files his next batch in about 7 to 10 days. His assistant sent me a brochure in the mail about 722, even though she didn't mention it when I was in the office. I got the special 0% loan during a sale at Ford and my payments are 368 per month. I would guess that with a 0% loan I would NOT benefit from a 722, is this right?

[jal1129]

You can always give them a quick call to be sure. It was probably the same brochure my attorney gave me. I called them up and first thing they did was look at the car value and payments. I know she did'nt take any personal info, I don't think she even asked my name. After she told me what the new payment would be I said thats more than we are paying now. So she said well it looks like we won't be able to help you then goodbye and hung up.

I did a quick internet search and it was looking like they charge in the neighborhood of 25% interest.