Renegotiating Car Loan

[StewieGriffin42]

I have a car loan that should be payed off in 2 years. I am going to reaffirm this debt when I file. I was wondering if it might be possible in the reaffirmation to get the bank to extend the remaining term of the loan to 4 years, thus cutting my monthly payments in half.

The bank would make more money this way anyway b/c they get more interest. I know they don't want the car, so do you think they would be willing to go along with this?

[SinkingFast]

Depends on the car. Banks have a set "loan value" and term for each vehicle based on lots of factors. Make, model, year, mileage, overall condition, etc. contribute to the value basis. New vehicles can get a full 5 or 6 year note while older cars may only be allowed a 2 or 3 year note. Banks would not lend money on many cars you see at "Buy Here, Pay Here" car lots. Those cars are generally available there because more reputable dealers will not risk their reputations by selling them.

Also, creditors are not required to reaffirm. Even tho a BK filer requests to reaffirm, the creditor is not required to comply. That can be a factor in their consideration as well.

You can ask. Worst they can do is say No.

[so-beyond-broke]

If you are willing to pay then the creditors should be happy

I will eventually file bk. The only thing i plan to re-affirm is my car. I have been paying on my car since 2001 and I have about 10 payments left to be free and clear. I hope that the bank lets me re-affirm. If they refuse then it turns out to be their loss - so why would they turn away a person willing to pay?

so-beyond-broke

Depends on the car. Banks have a set "loan value" and term for each vehicle based on lots of factors. Make, model, year, mileage, overall condition, etc. contribute to the value basis. New vehicles can get a full 5 or 6 year note while older cars may only be allowed a 2 or 3 year note. Banks would not lend money on many cars you see at "Buy Here, Pay Here" car lots. Those cars are generally available there because more reputable dealers will not risk their reputations by selling them.

Also, creditors are not required to reaffirm. Even tho a BK filer requests to reaffirm, the creditor is not required to comply. That can be a factor in their consideration as well.

You can ask. Worst they can do is say No.

[StewieGriffin42]

why would they not let me reaffirm?

[SinkingFast]

Lenders typically do reaffirm. They just aren't required to under the law.

The poster here was hoping to reaffirm and renegotiate as well. Many lenders are more than happy to have the borrower reaffirm. Who wouldn't want their money as agreed?? However, a lender may not be so happy to extend the original agreement.

[StaciMM]

No harm in asking... Just keep in mind that due to interest, it won't quite be those #'s. You'd either be paying more than half (if you double the # payments remaining) or more than 4 years (if you stick to 1/2 the payment).

One thing-if you do reaffirm, make sure you have gap insurance if the car is worth more than you owe.

I have a car loan that should be payed off in 2 years. I am going to reaffirm this debt when I file. I was wondering if it might be possible in the reaffirmation to get the bank to extend the remaining term of the loan to 4 years, thus cutting my monthly payments in half.

The bank would make more money this way anyway b/c they get more interest. I know they don't want the car, so do you think they would be willing to go along with this?

[StaciMM]

Stewie-if you're current, you shouldn't have a problem reaffirming. Most of the time, reaffirmation is at the same terms - it continues the original loan contract so that the BK doesn't apply to it.