Charge off

My bank is threatening to charge off my car loan. I only owe the late fees and interest. ($2500. Total) I have made 300 payment every 2 weeks & have offered to settle with them for 50% of what I owe them, they declined my offer and said I had to pay them in full.
They are stating that it will take me a few years to get the pink slip from even after I finish paying them off. Is that true? What other options do I have?