I'm afraid that if you default the loan, they can take the auto. You generally have three options.
Negotiation - Contact them and explain that you have received an “x” amount of funds and that you would like to propose a settlement. Usually starting like that will get their attention.
Also you might mention that you are attempting to clear up all of your debts in order to avoid being forced to file bankruptcy. These are usually very good key phrases.
The end of the month is also the best time to get best deals, so let them know that you can settle before end of month (also a good key phrase).
CREDIT COUNSELING / DEBT CONSOLIDATION
This is a free service offered by a non-profit that will negotiate with creditors to establish a debt management plan (DMP) for you. The DMP often includes lesser payments per month and maybe even an overall lesser debt. While many promise 50% cut, a cut of 10% to 20% is more likely. This is a good option, but your credit will reflect it, and your credit might suffer a little because of it.
Bankruptcy - Wiping the slate clean and getting to keep a lot of your stuff (house, car, jewelry, thousands in cash, etc.,– basically a LOT) is a good plan for many who just are FED UP, and it might work for you if you really feel you will never ever pay the debt off. Your credit will be down in the dumps for seven years, but then you will emerge reborn. You generally have two options available for personal bankruptcy: -Chapter 7, which basic liquidation of many assets and the quickest; and-Chapter 13, if you have a steady income, it allows non-liquidation and the Court sets up a plan to repay all or part of what you owe.