by ezcoonass » Tue Jul 13, 2010 06:45 am
BOUGHT 07 HARLEY FOR 17000.00, 14.56%, TOTAL FIANCE 32000.00 INCLUDES GAP, EXT. WARRANTY, PRE-PAID SERVICE PLAN, TOTAL BIKE I RETAIN SALVAGE FOR $10500.00, INSUR. PAID 5400.00, I PAID BACK 16000.00 ON LOAN BEFORE THE WRECK, I STILL OWE ANOTHER 16000.00, DO I HAVE TO PAY THE 10500.00 TO RETAIN SALVAGE, SINCE I STILL OWE 16000.00 ON LOAN OR DO I PAY 10500.00 AND GAP PAYS THE REST OR GAP PAYS ALL BECAUSE IT IS UPSIDE DOWN?
Posted: Tue Jul 13, 2010 04:47 pm Post Subject:
Your gap coverage will cover the PAYOFF balance of the loan, which will be less than $16,000 since the interest is not added to the loan as a lump sum up front, but accrues on the declining balance. But if the Insurer pays the loan off, the bike is theirs. You can negotiate to repurchase the bike from them -- what are they going to do with a lump of steel and chrome? Might even get it for less than what they spend to pay off the loan.
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