Considering auto redemtion loan

[AZNoName]

So I owe about 22K on a car worth about 14K. The payments are managable at $380/month, but I was thinking it may be worth it to consider a redemption loan... Some questions:

1. Who are the reputable auto redemption loan lenders out there? I surfed the web for a while but some sites felt a bit 'scammy'.

2. Do I need to catch up on my payments before I consider redemption? I was going to call the lender today and get current on my payments. Not sure if I should hold off.

3. What kind of rates/terms to the redemption loan companies offer?

4. how does this process work? Does my atty need to file a motion before I go through with it?

5. Is there any calculator or any way to know if it's worth it to go through a redemption?

Thank you!

[ace300s]

Like you I was considering reaffirming my auto loan. My car was valued at $10,500 and I owed $14,000 with a high interest rate. To my surprise my lender sent my a reaffirming letter. The new loan is reduced to the value of the car and at a zero percent interest rate. New payment was $260 X 40 months. Because this was my only vehicle and I needed one, I jumped at this offer. I plan to pay it off as quickley as possible.

I'd have your attorney or you contact them and negoiate reducing the loan amount to the value of the car. Shoot for zero interest rate. They really don't want the car back.

[bcohen]

I agree. See if you can renegotiate the terms with the original lender, if possible. It costs them money to reposess the car and when they sell it at auction, they'll get far less than the current market value for it. If they won't negotiate, then you can either attempt to refinance with one of the 721 companies out there, or alternatively just drive it payment-free for a couple months or so until they reposess it. Then you can spend a couple grand on a "beater car" and not have to worry about loan payments anymore.

[hmsmith]

I owe around $24,000 on oue 2010 CR-V even though it is worth $21,000. Our rate is 4.1% and we have 55 months to pay. We are planning on reaffirming this loan, however 5/3rd bank will not reduce our rates or the amount of the loan, even after my attorney has tried to negotiate with them......very frustrating!! My attorney suggesting I call the redemption company to see if it would save us any money. My attorney provided their phone number and gave me the info they would need, it was a 5 minuted phonecall to find out if they could save us any money or not. They actually said our car was worth around $14,600 but with their interest rate (obviously higher altho she didn't tell me what it was), that they could not save us money, that our car payment would actually be more by about $5 per month. My attorney also said that redemption loans rarely end up being cheaper, but occasionaly they are and if it would have saved us money, we would have went for it. I don't think it's a scam, and it's def worth looking into to see if it will save you any month! Good luck!