by chrisdunn15 » Mon May 17, 2010 04:39 pm
i live in ohio, my is pending being totaled but im fighting the acv right now, if it comes down to them still totaling it and me buying back. 1st will i be able to buy the car back still oweing on the car, i still owe 10k, and right now they have it at 9058 minus the 500ded.2nd im trying to get more then that cuz the car is worth 11k determined by at least 6 cars. but once the salvage price is ded will it be up to me rather the rest of the money goes towards payin off loan or can i use some for parts and some to pay on loan.
Posted: Mon May 17, 2010 06:43 pm Post Subject:
The problem is any check issued by the insurance company should have the lien holders name on it. Also, the insurance might be responsible for having the title changed to a salvage title (depends on state laws). If you maintain possession of the vehicle then the insurance company will probably reduce the amount paid by the salvage value of the vehicle. Your lien holder would need to sign off on this as they need to be willing to accept the payment and keep the loan in good standing. In other words you need to be sure that the lien holder will accept the payment as their name will be on the check.
Again, the other problem is what needs to be done with the title.
Posted: Mon May 17, 2010 07:11 pm Post Subject:
well im still discussing the acv of the car now bc, they gave 9500 car still worth 11k at least, and i still owe 10500, i sent them a few cars listed that have same or alot more millage then my car so they can hopefully re evaluate. i also have a shop that my buddys works at, and the manager is willing to work with me on trying to get the insurance to agree on a price so that i can possibly get the car repaired. my insurance totals at 70%, and 70% of 8900(which is what they said its acv was before title and tax) 6230, i havent got a chance to ask them what the estimate was, or if they jst assumed it would be a total. but if they increase my acv to at least 10k my shop will fix for as low as 6500,
Posted: Tue May 18, 2010 03:25 pm Post Subject:
they gave 9500 car still worth 11k at least, and i still owe 10500
Excellent demonstration of the reason for purchasing "gap" coverage on a leased or financed vehicle. Intended for just this sort of situation. Takes the guesswork out of paying a total loss. How much would the premium be? Maybe a couple of hundred dollars a year, at the most.
This vehicle must have been purchased used, otherwise it would not have a $10,500 loan balance. It might be more difficult to get gap coverage on a vehicle not considered "new" at the time of purchase.
Posted: Tue May 18, 2010 04:04 pm Post Subject:
It might be more difficult to get gap coverage on a vehicle not considered "new" at the time of purchase.
I have never heard of any lenders not offering GAP for new or used.
Posted: Tue May 18, 2010 05:13 pm Post Subject:
Poor choice of words? Perhaps writing "more expensive" (in terms of the cost-benefit ratio) would have been better. If it's more expense, that probably makes it more difficult. We all know used car prices are more volatile than new car prices, and the "gap" is therefore more fluid, exposing the insurer/lender to a larger potential loss.
Didn't mean to imply it was not available.
Posted: Wed May 19, 2010 12:08 pm Post Subject:
First of all you will have to PROVE that your vehicle is worth 2k or so more than your carrier says it's worth...also be sure and review their evaluation closely look at the options, mileage etc. to make sure it's correct.
Secondly, I've seen a lein holder allow an owner to retain a totaled vehicle with a note on it exactly once...hard to do, leinholders typcially want their money, instead of having THEIR payment reduced by the salvage bid, you still owing on a vehicle you can't drive, and presumeably no money for repairs (because the lein holder has the money)...also and you'll need to check your state regulations on this...even if by some miracle your lein holder lets you retain it, your title will most likely be branded, 'salvage' or 'prior salvage' just an fyi here, that will automatically reduce your vehicles ACV for any future claims and/or trade in...
Might be a good idea to let this one go...do you have a GAP policy? If not, remember this when you purchase your next vehicle (assuming you're upside down).
I'm seeing GAP coverage on 70-80% of the vehicles I total now (thankfully)...most lein holders are offering or insisting on this to grant the loan. Even on older vehicles, had two last week, 97 lumina, and 98 taurus, both with notes, both with GAP...
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