How to Negotiate a Purchased Car Loan Payoff Balance

When you signed your auto loan contract, you agreed to pay your lender for the vehicle's cost, plus interest. The lender then paid the total selling price for your purchase to you or a dealership, so trying to negotiate a lower payoff balance might prove difficult. If you're able to pay your loan in full, you can make an offer to your lender for a lower payoff amount. Because of your signed contract, however, your lender doesn't have to accept your offer.

Instructions

1

Organize your finances so you can easily access the funds for your loan payoff amount. If you're refinancing the loan, obtain an approval before negotiating. If you're paying cash, transfer your money around if necessary so that you can access your cash quickly.

2

Call your lender and ask for your loan payoff amount. The amount you'll receive differs from the loan payback amount stated in your contract, as your contracted amount includes interest charges. Decide your target payoff amount for negotiations.

3

Tell a lending representative you'd like to pay off your loan and state the amount of your offer. A special department may deal with reduced loan payoffs, so arrange to speak to the department that handles payoffs if the representative isn't authorized to make a decision.

4

Discuss a counteroffer if your lender doesn't accept your initial offer. Once you decide on a reduced payoff amount, get the agreement in writing and arrange to pay your lender quickly.