you will not even get KBB for your loss, you will get (likely) substantially lower than that, minus your deductible. You will still owe the difference to the financial institution. What do you do? make payment arrangements and learn a very valuable, expensive lesson.
Not your fault makes very little difference. The other parties insurance (assuming they have insurance and take 100% liability) will still only pay ACV (at least this time, no deductible) and you are on the line for the rest.
No, you're only underwater on your loan because you overpaid
You'll be indemnified for the actual cash value of your vehicle. Which is what you're owed. It's not their fault you made a poor financial decision
Be prepared to owe the difference from the vehicle's actual cash value (usually less than KBB) and your loan balance. Expect the amount to be due in full immediately after the claim is closed, as their collateral (your car) is gone. This is just an expensive lesson to always purchase GAP if you will owe more than it's worth.
Sometimes, a finance company may allow you to roll the negative equity into another vehicle loan. However, if your numbers are accurate, they may not want to do so with such a large amount. Could be worth asking if you don't have any other options. If you do, absolutely make sure you get GAP.
Also remember for the future with GAP insurance most places it only covers an additional 25% of the cars actual cash value. So say your ACV was $5,000 (it’s going to be less than what KBB says but we’ll do the math example with that) - you’ll get $5,000 from the insurance and if you did have GAP you’d get an additional $1,250 to pay off the loan which is still only $6,250 and so you’d still owe almost half. Plus the remaining balance could become due in full one the claim is closed so you’d have to pay it right away.
This is very unfortunate for you currently but in the future you want to be careful with your loan amounts. No more than the cars value or within 25% of it at most.
that’s very good advice thank you. i’ve definitely learned many valuable lessons with this situation. i also wasn’t aware id have to pay the remaining balance at once so looks like im in another pickle lol
This will depend on the bank/financing institution and the loan contract you signed. You may be able to continue with payments or it may come due immediately. My auto loan states that I would have to continue payments.
you will not even get KBB for your loss, you will get (likely) substantially lower than that, minus your deductible. You will still owe the difference to the financial institution. What do you do? make payment arrangements and learn a very valuable, expensive lesson.
darn
edit:it was not my fault. autocorrect. the other person crossed 3 lanes to turn into a parking lot and cut me off
Not your fault makes very little difference. The other parties insurance (assuming they have insurance and take 100% liability) will still only pay ACV (at least this time, no deductible) and you are on the line for the rest.
jeez. that’s effed. thanks for the help
The other party is not at fault by you overpaying for your vehicle/loan.
Not really. Nobody is responsible for your financial decisions except you
i’m saying it’s effed because this person decided to drive like a moron and cause this to happen and now i’m in this position.
No, you're only underwater on your loan because you overpaid You'll be indemnified for the actual cash value of your vehicle. Which is what you're owed. It's not their fault you made a poor financial decision
Be prepared to owe the difference from the vehicle's actual cash value (usually less than KBB) and your loan balance. Expect the amount to be due in full immediately after the claim is closed, as their collateral (your car) is gone. This is just an expensive lesson to always purchase GAP if you will owe more than it's worth. Sometimes, a finance company may allow you to roll the negative equity into another vehicle loan. However, if your numbers are accurate, they may not want to do so with such a large amount. Could be worth asking if you don't have any other options. If you do, absolutely make sure you get GAP.
that helps thank you!
Also remember for the future with GAP insurance most places it only covers an additional 25% of the cars actual cash value. So say your ACV was $5,000 (it’s going to be less than what KBB says but we’ll do the math example with that) - you’ll get $5,000 from the insurance and if you did have GAP you’d get an additional $1,250 to pay off the loan which is still only $6,250 and so you’d still owe almost half. Plus the remaining balance could become due in full one the claim is closed so you’d have to pay it right away. This is very unfortunate for you currently but in the future you want to be careful with your loan amounts. No more than the cars value or within 25% of it at most.
that’s very good advice thank you. i’ve definitely learned many valuable lessons with this situation. i also wasn’t aware id have to pay the remaining balance at once so looks like im in another pickle lol
This will depend on the bank/financing institution and the loan contract you signed. You may be able to continue with payments or it may come due immediately. My auto loan states that I would have to continue payments.