I purchased a car from a dealer by getting an auto loan, I decided that I did not want the car because I found something that I work better with. So then I returned it and they gave me a check back but not the complete amount. They charged me a restocking fee. I accepted. Now my bank is asking me to pay it in full. I don't have the money to pay it all back.
I am asking for them to change it to a personal loan.
So I am currently working on getting them to make the change if possible. I understand that they can charge me a higher interest rate of course which I am willing to pay.

How would you handle this if you did not have the money anymore. FYI I use the monies to buy me a cheaper car and pay off some items that I owed.

Talk to the bank. Depending on the amount they might go for a personal loan or they might just accept a payment schedule for it. It is between you and the bank now and it will vary from bank to bank.

I agree with CravenMorhead. We are talking going from a secured load to an unsecured loan Just because you qualified for the one, doesn't mean you will for the second. And you are right.. higher risk to the bank equals higher interest rate and tighter requirements.

You made a mistake buying anything else with that money. It was issued SPECIFICALLY for a specific Vehicle and a lien was to be put on that vehicle that somehow was skirted past.

If that lien was actually recorded... that dealer can't resell the car until it is released by the bank.. and the bank won't release the lien until they have their money back.

You really won't be "Converting a loan". You will be taking out a new loan to pay off the old loan. Far easier through the same lender.

Several problems, you can not just give them the car back without paying off the car loan. The bank with the car loan will hold the title, making it impossible to resell the car, until this is paid off.

You could not even legally agree with the car place, to accept less, than the full amount, unless you were able to pay off the loan. (think fraud)

So you get a personal loan for the difference in the money you go for the car, and what is owed. (you will owe interest to them also) And pay the bank off.

This was all issues you needed to talk about before car was returned.

Talk to the bank and see what they are willing to do for you. Glad you're willing to pay extra money because you probably will.

What is your collateral for a personal loan? A home, some stocks, a 401K? Or just a used car, which won't help.
I doubt that you will be granted a personal loan. If you are, it might be at rates as high as a credit card. You might be better off applying for a new card with a 'teaser' interest rate and juggle cards til it's paid off.