r/askcarsales • u/Old-Nectarine-4580 • 1d ago

US Sale Total Loss Neg Equity

Hello. Kinda in a situation. I got into a car accident and totaled my car. My gap coverage expired and now I have a $7000 balance I’m stuck with. Can I roll the negative equity into a new car loan without having a trade in due to the total loss?

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16

u/kriswknight Lincoln GM 1d ago

How did your gap expire? I have never heard of gap being written for a shorter term than the loan.

3

u/Old-Nectarine-4580 1d ago

Because the loan was extended past expiration date

7

u/kriswknight Lincoln GM 1d ago

Right but how long would it have to be extended to still owe $7000?

10

u/gganew Ford General Sales Manager 1d ago

Gap won't cover late payments or fee's either, probably more to this story.

1

u/JRGonzo89 Former Toyota and Scion Sales 1d ago

Yup

1

u/kriswknight Lincoln GM 1d ago

I would think the vehicle would have gotten hooked before it got to that much in late fees and missed payments.

2

u/gganew Ford General Sales Manager 1d ago

Depends on the bank, repo is always a last resort.

Deferred payments aren't covered either. Lets say OP has a 650 payment, deferred six or seven payments over the term and got past due a time or two, with fee's that would be over 7k that GAP wouldn't cover.

-2

u/Old-Nectarine-4580 1d ago

It was extended, not late