S.G. asks from Albuquerque, NM on June 16, 2009
Still Owe $$$ on Car After It Was Totaled in Accident
I was in an accident back in Nov. and my SUV was totaled. It was a no fault accident. After the insurance settled we still owed $$$ on our vehicle. I am really ready for a new one, the girls and I have been driving my husbands truck since then and it is a pain.
I just don't know what to do from here. We don't have the money to pay it off (it's about $3500). Do car dealerships roll loans from totaled vehicles into new loans? I know they do it if your upside down, esentially that is what we are, only without the actually vehicle. Would our best bet be to go to the dealership we have the loan through or does it matter?
We have never been in this situation and don't really know what to do from here. All your advise and experience would be helpful. Have a GREAT day.
Just wanted to add that we have talked to the lender and they will not reduce what we owe or pay it off. Also, since this was a NO fault accident, there was no settlement. We just happened to be upside down on the loan so when they paid the blue book value we still had a balance.
1 mom found this helpful
So What Happened?™
Thanks for all the advise everyone. We decided we will roll the the remaining balance into a new loan. I have called several dealerships and they said no problem. They will just treat it as if we were upside down. We did not have gap insurance because carmax does not offer it (or wouldn't on our vehicle) and it was way too expensive through our insurance company. We will consider getting it with the new car. We will probably buy a used car but there are some great deals out there with new cars. So this weekend we will be car shopping. Thanks again everyone. Have a GREAT week.
Oh, and yes the previous car was "totaled". My husband went to look at it and the frame was shoved into the interior of car. They will not fix that because it has to much potential to be dangerous in the long run.
More Answers
S.D. answers from Phoenix on June 19, 2009
Maybe, Plan to get gap insurance with this go around. :0)
F.H. answers from Phoenix on June 16, 2009
Hi S., Well, you should have included the total amount of the payoff in the settlement you received from the other drivers insurance company since you were not at fault and should not be paying ANYTHING for an accident you are not responsible for. You probably signed off on something saying you will not go after more money, so you are out of luck on that. Not sure if the car dealer will add the $3500 on the new car loan or not. The way around this for the future is to add "gap insurance" on your new car. However, DO NOT add it at the dealer...add it thru your insurance agent, it's MUCH cheaper and you can remove it when you owe what it's worth. This coverage will pay for the "gap" of what you owe and what the car is actually worth at the time of a loss. I'm an insurance agent so I hope this helps. Let me know directly if you need any more info! Good luck!
P.S. answers from Phoenix on June 16, 2009
I don't think it would be in your best interest to try and get the dealer to roll what you owe into a new car loan. Have your tried talking with who ever owns the loan you still owe on? Maybe they will settle with your for a lesser amount, if you can make a lump sum payment. Come up with an amount you can afford and start making phone calls. Keep at it, because as they say, "The squeaky wheel gets the grease". Best of luck to you.
K.N. answers from Las Cruces on June 17, 2009
Was it really "totalled"? What an insurance company consideres totalled is based on a formula - but it is still sometimes better (ie. more economically feasible) to get it fixed anyway. Sometimes, totalled is totalled though, so I wish you the best.
C.P. answers from Phoenix on June 17, 2009
Did you guys get gap insurance (something like that) that covers the difference in cases like this? We had gotten it with one of our cars after having that happen to us before and we lost out. Maybe you got it and didn't know about it.
But to answer your question, I don't know. I think nowadays they may be willing to do anything to get you to drive a car off of the lot (and don't forget to get gap coverage or ask about it just in case) so they may be willing to roll the balance over into a new loan for another car.
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