Are you working with an attorney, and what is his or her advice? You aren't specific about what the car is worth, or what you think you would have to pay to replace it. I'm assuming it isn't worth more than you owe, but you'd have trouble getting a comparable car financed.
While the lender may try to tell you you "must" reaffirm to keep the car, that depends on your BK Court and State's rules. Some lenders make simply filing an act of default in their contracts and use that to force you to reaffirm instead of doing a "drive through".
My attorney was adamantly against reaffirming because essentially you give the lender something with no consideration in return. No lender is going to cut the interest rate or make other changes in your favor as a consideration for you to reaffirm. There's no reason for Santander not to reaffirm at your current terms as if they get the car back they won't recover what you owe.
It seems to me you may be able to get the collateral value separated from the unsecured excess (what the lender will get after repo vs. The current note amount), called a "cramdown". But that's an attorney question and may only be in a Chapter 11.
Here's what I'd consider:
1. Do a drive-through if possible. You won't be legally obligated on the debt but the lender can take the collateral if you default. They will NOT report your payments to a credit bureau unless you reaffirm (and might not even then). You can walk away and give back the car any time you're ready to get a new one.
2. Look into a cramdown and use that to negotiate
3. Reaffirm. You'll have the car payment for 18 months but sometimes the devil you know is better. You know the car's maintenance history and reliability, you need a car for work, and I doubt you'll get another car as good for a lower payment any time soon.
So it sounds like it will cost roughly the same as what you owe to replace it. You'd be getting a similar car where you don't know the maintenance history. If I were in your shoes I would try for a drive through, if Santandar can force you to reaffirm to keep the car then reaffirm. I question whether they would reduce the interest rate. You need the car for business and if you're at all like I was when I was about to file you need to reduce the stress wherever you can.
Hyundai and Kia have gotten a pretty solid reliability reputation from what I've heard.
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