The best magazine
- 1
Ask the bank for a payoff statement.bank image by Pefkos from Fotolia.com
Contact the lender and ask for a payoff statement. A payoff statement is an itemized document detailing the outstanding principal loan balance and interest. Payoff statements may also include early payoff fees or penalties. - 2
Compare your vehicle's value to similar vehicles.full parking lot image by Aaron Kohr from Fotolia.com
Assess the value of the vehicle. A vehicle's value may be calculated by comparing private party sale prices and dealership prices of the same make, model, year and mileage of that particular car. Allow for depreciation, cosmetic damage, wear and tear and any other defects. - 3
Appraisal value may differ from assessed value.l"ordine image by Sergio Di Giovanni from Fotolia.com
Have the vehicle appraised. Appraisal value might differ from the assessed value previously determined, but will yield true market value and resell ability. Professional appraisers can also give advice as to the market share of the make and model, resale history and value retention. - 4
Propose a payoff amount to the lender.internet dating image by Graham Dance from Fotolia.com
Draft a proposal to pay off the loan (including any early payment penalties) and send it to the lender with a request to pay off equal to the amount of the private assessment and appraisal. (Include a hardship letter if warranted to explain the disparity.) Payoff statements are generally not negotiable, particularly for secured loans, but in extraordinary circumstances, lenders may be amiable. - 5
Refinancing may be your only option.business report image by Christopher Hall from Fotolia.com
Seek refinancing options if the lender will not accept the proposed payoff amount.
Source: ...