My car was totaled and I owe 8500, insurance will pay 8500 BUT……..?
Tags:finance company, loan money, poor credit, salvage,
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I wish to keep the deliver as well as that’s 1200 dollars which leaves me 1200 dollars reduced of profitable off the balance. Will the credit kinship concede me to be reduced upon the boon as well as go upon to have my payments until the change is paid or will they demand upon receiving the complete 8500 as well as have me come up with the 1200 to buy the automobile back. we have bad credit as well as cannot refinance. They won’t loan income upon salvaged vehicles. we have concluded upon an volume with the adjuster though right away he wants to have certain the change is paid prior to he can accept the offer. It sounds similar to we competence remove the automobile if we accept the offer, or be forced to come up with 1200. Can we or should we case the allotment until we have paid down the change sufficient to be authorised to keep the salvage? Or what recommendation do we have? Is the adjuster thankful to compensate off the change completely? What if the suggest was not enough?
Thanks really most for your answers which helps really much.
Does the financial association have any contend in either we keep the deliver or not?
I meant if we am reduced upon the change (the price of the deliver creates me reduced by 1200) can the financial association stop me from gripping the deliver so they get the bigger check?
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Related solution post:
Jeff,
If you have agreed on the value of the vehicle with the appraiser then that’s problem #1 solved.
Ignore the advice from others about GAP coverage. If the insurance company is willing to pay the payoff amount then there is no gap and this is irrelevant. Gap coverage won’t cover a gap caused by the owner keeping the salvage. There is no gap.
Depending on what state you’re in you also might have sales tax to consider. In most cases you’ll find the insurance company has to pay sales tax on the car they are buying from you but if you keep the salvage they may not. This could be a significant sum. Clarify if the $8500 includes sales tax or not and what their obligations are in respect to that if you keep the salvage.
Also clarify who’s paying any towing / storage / body shop tear-down charges that may exist on the vehicle.
Most likely the loan agreement will determine what happens. It certainly has a clause addressing what happens in the event of a loss to the vehicle. Find it and read it.
Also, carefully consider whether keeping the salvage is a good idea. If it’s just hail damage or something like that where not much needs fixing then it might be okay to keep. Just remember that many states don’t want rebuilt cars on the road and intentionally make it hassle to re-title or re-register the car. Your car is likely to be subjected to a complete inspection that will include all sorts of things that had nothing to do with the damages but are part of the overall inspection process, ie. ball joints, brake pads, lights opposite the end that was damaged. It’s often more hassle than it’s worth. Most people regret doing it.
You either borrow the 1200 or you out of luck. The insurance company will not be stalled and the lender wants full payment. That 8500 check will be made out to you and the lender.
The adjuster is NOT required to pay off your balance. The amount of your note has Nothing to do with the value of the car.
You can stall all you want….but you won’t get any more money.
When an insurance company totals a car they buy it from you. They then sell the car at a salvage auction to recover some of the money back.
When you keep the salvage – the insurance company determines the value of the car. They then subtract the amount they think they could have gotten at the salvage auction. You get the car and the difference.
You will need to contact your finance company about the difference. Only they can tell you what they are willing to do.
As far as the offer on the car goes – the insurance company owes the Actual Cash Value of the vehicle. That means – what the car could have sold for given its age, condition, options, mileage. When you keep the salvage: AVC – salvage value – deductible (if applicable) = amount you get.
You’ll have to contact the credit union and ask them if they’ll give you a personal laon for that amount, or borrow it from someone else.
You can also ask the adjuster if they’d go down to $750 for the salvage value – it’s negotiable, you know.
No, the adjuster doesn’t have to pay off the balance, unless you have "gap" coverage – he only has to pay "actual cash value" less your deductible. You should probably go to http://www.kbb.com, and find the private party sale value in your area, and see if he’s lowballing you – and talk to your agent, see if your agent can get the payout increased a bit, and the salvage value decreased a bit.
If you retain the salvage then your insurance company does not need the title. Ask the total loss adjuster if your state requires the title to be marked as a salvage. Call you credit union and let them now what you are wanting to do and see if they will keep your loan open and let you pay the balance off with your normal payments. Also you can stall the total loss payout if you are trying to pay off the car more first. All you need to do is call the total loss adjuster and have them close you file until further notice. you should have at least 3 years before they have the right not to pay you anymore.
Personally, I would not keep a car with that much damage because it may not be safe to drive even if you repair it. You may be better off looking for another car.