Looking for a solution for a totaled car with remaining payments? #TotaledCar #CarLoan #InsuranceClaim
Wondering what to do when your car is totalled but you still have payments to make? We’ve got you covered! Keep reading to find out your options and how to navigate this tricky situation.
Relevant Keywords:
– Totaled car
– Car loan
– Insurance claim
– What to do
Option 1: Contact Your Insurance Company
– File a claim with your insurance provider
– Check if your policy covers total loss
– Discuss the payout options with your insurer
Option 2: Negotiate with Your Lender
– Contact your car loan lender
– Discuss options for repayment or loan restructuring
– See if refinancing is a possibility
Option 3: Consider Selling the Car
– Evaluate the value of the totaled car
– Explore selling it to a salvage yard or through private sale
– Use the proceeds to pay off the remaining loan balance
By exploring these options and taking proactive steps, you can effectively manage a totaled car with remaining payments. Don’t hesitate to reach out to professionals for guidance and support during this process. #CarTrouble #FinancialAdvice #ExpertTips
She has no options. She royally borked herself. When she inevitably defaults, she’ll get sued and the creditor will get a judgement that will chase her essentially forever.
So don’t default
Yes, she would still owe after repo but the sale price would get taken out (whether auction or scrap). She may as well get the repair estimate for what its worth.
Options for what to do depend on income and assets.
She keeps making the payments
She needs to get an e-bike and stop driving, she can’t sell the wreck without paying off the loan
This is worse than you might think. She was probably in violation of her loan by not having insurance. Almost all loans require you to maintain full insurance, including comprehensive. The loan company could accelerate the loan and make all payments due immediately if they find out that she did not have insurance. Your mother needs to remain very quiet about the situation and pay off the loan as quickly as she can. To sell the car she has to come up with the difference between what she gets for it and the loan amount in cash.
There is no best option here. She has to take the L and take this as either a very expensive lesson, or punishment for her irresponsible behavior.
How did she get a loan and buy that car without insurance? Or did she cancel insurance right after driving that car off the lot?
Your mom acted stupidly and is now paying the price. Her car loan has to be paid with dollars, not with the car. Going without insurance was a bad gamble and with her driving record, sure disaster. If she has any assets at all, they are at risk. At the very least, her credit is screwed for years and other than paying off the loan and going to a driving school, her only option may be bankruptcy. The best advice you can give her is to look honestly at her past behavior and attitudes and then changing the way she does things. Otherwise, her situation may get worse.
She needs to tow it to a body-shop and get an estimate for repair. All other discussions are irrelevant until you know what the situation is with regard to the repair cost.
She is stuck with the payments, best option is to pay off the car early and get it off the books.
This is why you must carry gap insurance on your vehicle.
It’s not good. Depending on her finances bankruptcy might be her legit best option.
“Between insurances” is an euphemism for uninsured. If she damaged another car or property expect the owner or their insurance to come after her, too.
It’s going to be tough but you need to cut her off.
The fact she was financing it and didn’t have insurance is gonna be very bad for her. She already broke the terms of the loan and when they find that out she’ll get sued and wages garnished due to the money owed.
Alright brother, after reading the posts and other comments you need to find a lawyer or accountant get with them and your mom and pretty much sell everythingggggggg house included. Depending on her health a small apartment, move in with you, or nursing/retirement home. Tbh she has no reasons to be driving in todays world so no need to get a beater car for her or anything. This sucks for you and for her but she is going to have to deal with this
Honestly nothing will likely happen once she surrenders the car or it is repossessed. The loan will likely get charged off and maybe sold to a debt collector. She’ll still owe the money, but they’ll never be able to collect. Her credit will tank (if it hasn’t already) and she’ll probably never be able to finance anything for a long time. Contrary to what everyone else is saying, she’s not going to lose her home. The likelihood of the bank suing and trying to claim her assets is tiny. I’ve worked in consumer default for a large bank and the costs associated with suing someone are huge and almost never worthwhile. When they realize they’re dealing with a retired person with almost no income, they’ll cut their losses and move on. Especially with a reverse mortgage on the house, they’ll have no claim to the property before the mortgage company and would need to make them whole before collecting anything.
> The loan company won’t budge or anything.
why should they?
Pri one: get her to turn in her license.
This is heartbreaking. She is ultimately going to get repo’d and sued for the difference, plus a lot. IF she can manage to keep paying the payments and survive with a car, then she may be able to put it off for a while. But they will eventually try to put insurance on the car themselves if she doesn’t have it, and then it won’t be insurable and they very well could call the loan. Seems like a reasonable approach to sell the house, pay this debt off, and then buy a reasonable priced place she can afford on SS. That will dramatically change her financial situation she now enjoys, but she screwed up.
The only way I would directly get involved with any of her finances is if she agreed to give you financial power of attorney so you can see the extent of everything going on. But that still has risk because she is not incompetent and she could still make stupid decisions. If you did this, and you had power of attorney, you could freeze her credit and not give her the codes to unfreeze it. That would prevent her from doing anything that requires borrowing money. My guess is she is not bad enough yet to where she would even agree to something like this. It is definitely going to have a very negative impact on her situation because she took $50K and set it on fire effectively. And as someone with no money and no savings she is going to get the legal version of her kneecaps broken.
Very heartbreaking. How did she even get the loan for the car?
Serious question for you- is she competent. If she is not, then it may be better to get her declared incompetent and get an attorney to help navigate all of this.
Huge mistake letting insurance lapse on a car that you don’t even own. If the bank finds out, they are going to make life hell by requesting the rest of the loan due immediately.
This sounds like a bad situation all around, OP. But don’t make any big decisions based on what people are commenting here. Go talk to a lawyer and see what the next best steps are for your mom.
This is devastating. Yes, she is still liable for the loan even though the car has been totaled and even if it’s repossessed. What’s more, her loan agreement almost certainly required her to maintain car insurance for the duration of the loan; her not having insurance could trigger a default, which would allow the lender to repossess the car and/or call the entire note immediately anyway.
Did she happen to purchase gap insurance? That’s her only possible out. Gap insurance will cover the difference between the actual cash value of the car and the outstanding balance of the loan. If not, she’s pretty much screwed. Repossession isn’t going to really help her because the lender isn’t going to be able to get much by selling the car, and it will tack on fees and penalties.
Buying an unaffordable car was a terrible decision, but your mom’s major mistake here was not having car insurance. If she is at fault in the accident, she has tremendous liability and will likely be sued. She might need to consult with a bankruptcy attorney.
I hope your mom learns something from this incredibly expensive lesson. **Regardless, please do not allow her financial dysfunction to weigh you down. Do not assume liability for her mistakes. Whatever you do, do NOT buy her another car or co-sign on another car loan for her**. She’s going to have to get comfortable with walking and/or taking public transit for the foreseeable future.
She should immediately sign over the home and any large property or expensive property she owns to you or someone she can trust. This way she can let them lay the bill on her and possibly can declare bankruptcy if necessary and get this financial ruin out the way by somehow lowering it through other means like declaring bankruptcy. It will ruin her credit, her history with any payments, but she’s likely ruined it anyway as she’s got a lawsuit likely coming up for not having insurance on a car that should be fully covered and have gap insurance if possible. This is a major thing and she’s lucky no one was dead or hurt and she got in worse.
Your mom should never own or drive a car again. Let them reposes the car. Her credit will take a hit but at her age she does not need good credit.
So…even if she lets the bank repo her car. They most likely will only be able to sell it for scrap metal. Then, whatever money they make on it, they’ll apply to the repo fees first. Then, they’ll apply the remainder to the loan.
I suspect if you go this route, you’re looking at maybe a couple hundred dollars, couple thousands if you’re lucky, applied to the loan.
Regardless, she’ll still owe money.
If the accident was her fault, then she will owe money to the other driver as well.
If she can’t make payments, she can be sued. Any assets (her house) can then be liquidated.
Honestly, in her situation, her best option is to let the car be repo’d and then file for bankruptcy. Bankruptcy protects her assets from the car’s lender. But it might not protect her from the other driver’s judgement.
Where I’m from the dealership cannot let you leave with the car unless you have proof of insurance.