Hello BustedVisaCard, sorry for the late reply.
Let me see if I got this right. The car was repossessed in 2007 and shows a past due balance of $1080 on your report? Does it appear as a charge off? I’m not sure what you mean by “Credit was $15,600 and $12,400 of that is used”.
Even though the car was repossessed, you still owe the difference of what you owed for the car and the amount that the lender re-selled the car for.
I would try to negotiate a pay for delete. If it’s only $1080 (considering it’s a car loan), then it might be worth it.