Auto loans are generally not eligible for debt settlement programs. Debt settlement is a negotiation process where a debtor and a creditor agree to settle a debt for a reduced amount, typically paid in a lump sum. However, auto loans are secured debts, meaning they are backed by collateral, which is the vehicle itself. As a result, the lender has the right to repossess the vehicle if the borrower fails to make the required payments. However, if your car has been repossessed, it may be possible to settle any remaining debt.