In the last few months, OneMain has been contacting me about reaffirmation negotiation on car loans.
That took me by surprise.
With the exception of Ford Credit, I’ve been strongly opposed to reaffirming cars. Usually you can keep the car without reaffirming. and then give it back when your credit improves. I explain more about that, here.
OneMain figured out that they don’t want you to give them the car back when your credit improves, so they are offering you a better deal now. Up ’til now, I had never seen a car finance company really offer car reaffirmation negotiation. They wanted people to reaffirm the entire balance at the current interest rate on a take it or leave it basis.
But OneMain has come through with real balance and interest reductions. Taking a terrible loan and making it pretty good. If that’s on a car that you have been taking good care of–and been lucky to avoid problems with–then that makes sense.
Basically, here’s how this works. Get an accurate value on your car. Kelly Blue Book is one place. (Carmax used to offer to appraise any car, but apparently they stopped.) We need to email OneMain, at this email email@example.com, with the Blue Book value and say we’re willing to reaffirm based on that value at 6.0%.
OneMain then will send back a reaffirmation on that basis. At least a lot of the time. (Sometimes I’ve seen them add a little.)
PS I need to apologize to one of my clients last year, Kandy. Kandy believed OneMain’s offer when I thought it was just more smoke and mirrors. She was right and I was wrong. OneMain does seem to genuinely be willing to work out a new deal for you to keep the car. This is my apology, Kandy.