Can I negotiate a car loan payoff settlement?

I recently started a new job with a much higher salary than my previous one. I now have the cash to pay off the remainder of my car loan, but they are asking for much more than the remaining balance. Can I negotiate my car loan payoff settlement?

Answer
Congratulations on the new job!
Paying off the remainder of a car loan can be tricky and only sometimes can you negotiate the amount to pay off. Much of the decision comes down to your lender and the terms you agreed to at the start of your car loan.
It is not in the lender’s best interest to have you pay off the loan early, as they make a profit using the interest rate and can repossess the car if you fail to make payments. The increase in the total cost to be paid is likely a reflection of the money lost by your decision to pay before the loan period is complete.
If the first person you speak with refuses to negotiate, ask for their supervisor and see if you can find someone who will work with you. There are times when negotiation is just simply not an option, but it never hurts to ask around.
Hopefully, you can reach an agreement you are comfortable with!
You never want to feel like you are overpaying or being taken advantage of in a loan agreement, and the same goes for car insurance. Since you are already reviewing your auto finances, it may be a good time to review your car insurance policy and cost.
Consider using a comparison and shopping tool like Jerry to ensure you are not overpaying! Jerry is an app that shops the lowest insurance rates with over 50+ insurance providers for free and will continue to monitor your policy every renewal. The average Jerry driver saves $879 a year on car insurance!
Jack Walsh
Answered on Oct 22, 2021
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