Help 😭

[cdburnette]

I bought a car in December, I owe 7,000 on it still. On Valentine’s Day someone ran a stop sign and hit me. Their insurance took responsibility for it and my car has been in the shop for 2 weeks now. The repair rep just made it in and has determined it to be total loss and estimated the repairs at $5,155 I’m assuming that will be close to the payout they give me.
Is there anything else I can do? Or am I stuck just being back to square one trying to come up with a down payment for a new car and get a new loan and still pay off the rest of my current loan? I went directly through the person who hit mes insurance and didn’t make a claim on my own insurance. Is it worth involving them now?
I feel so defeated. I saved up 3000 on the down payment for this car researched and looked for months for a reliable car and a dealer that would finance me with my not so good credit

Should I get a lesser payout and keep my vehicle and use it to trade in on another car and roll over any negative equity on to that loan?
Any help would be appreciated

 

[former32%C2%B0mason]

@cdburnette Your own insurance won't give you anything additional. If it's totaled, you are only owed the Actual Cash Value from either company. If you still have a loan, you likely won't have the option to retain the salvaged vehicle. The lienholder gets paid first, and if you have any positive equity (it's worth more than you owe), you will get a check for whatever is left over after the loan is paid.

If you owe more than it's worth, and you don't have GAP insurance, you will be left without a vehicle and still owing the balance of your loan once the lienholder receives the money from insurance. The balance may become due immediately because their collateral is gone. It sounds like you may be in quite a poor financial position if you didn't have GAP. It's essential to purchase this coverage if you will have negative equity.

 

[jazzino]

@cdburnette Since you have a loan on it, you can’t own retain for the lesser amount. You technically don’t own it your lienholder does.

 

[cdburnette]

I owe 7000, say they determine its cash value is 8000 can I then pay off my loan and retain the car?

 

[cdburnette]

Or would my only option be they just pay my loan off and I take the extra 1000 or 1500 and use it towards a new car?

 

[cdburnette]

I’m really upset because the car is still perfectly drivable just with a medium sized dent in the side

 

[former32%C2%B0mason]

@cdburnette If there is any positive equity in the car, you will receive a check for the difference once the lienholder is paid. You can't choose to retain it.

You don't actually own it until you pay off the loan, so all of the money has to go to the lienholder first. They can't take the chance that you will just take the entire check and ghost them instead of using it to pay off the vehicle.

 

[jalopy83]

@cdburnette If it is still safely drivable you very well may be able to buy it back from them for the salvage value. I have done that twice (two different vehicles). I don’t know if different locations have different rules governing this, but in my area it is definitely possible.

You can also negotiate with the insurance company if the amount they offer you (or if the buyback price they set) is different than fair market value. I would research carefully what vehicles exactly like yours are selling for in your area. You can negotiate both directions, in fact. A higher pre-accident value, and a lower buyback price.

 

[mcrow]

@cdburnette Give up the thought of keeping the car - it’s useless. Who is going to take a totaled car with a salvage title in as a trade? It’s not going to happen. Don’t take the first offer and make sure that the comps (comparable vehicles) that they use to justify the value match all the details of yours - all the options. If the vehicle had any recent work done and you have receipts for that, share with the adjuster as it could help. Usually you can squeeze a bit more out of them than what they first offer. If you kept it, you’d have to pay for an inspection that says its roadworthy, get a reconstructed title, probably not be offered physical damage coverage by the insurance companies, and then worry about possible hidden damage that you can’t see. It sucks, but it’s what it is

 

[cdburnette]

@mcrow Thanks you guys for all your help! Insurance called me back and I am getting 13000 I feel very relieved
I guess I jumped to gun as someone who’s never dealt with this stuff before and don’t really have a support system to help teach or walk me through these things.

 

[mcrow]

@cdburnette That’s a WIN! Sounds like you got a good deal when you bought it then. Congrats!