What can you do with a car after you defaulted on the loan and it was not repossessed but sent to collections instead?

At this point, payment would be for the retrieval of your title.

Depending on the time elapsed, you may still be able to make payment arrangements to settle the debt by two methods:

Pay the full amount:

a) You can pay the full amount in one large lump sum and request that the negative report be removed from your credit report. Remember that it never hurts them to remove anything from YOUR credit report. Be sure to get it in writing before you submit your full payment.

b) Ask for payment arrangements. You can still settle your debt over a few months and receive your title.

Make a settlement offer:

a) Although this will still leave a negative impact on your credit, both parties will at least come to an agreeable outcome. Often they may be willing to settle for 80% to half the debt owed. You may be able to make payment arrangements on your agreed settle amount. Be sure to ask to have this removed from your credit report* It never hurts to ask. Usually they are willing to do so and can have it removed within 30 days.