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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u/Old-Nectarine-4580 1d ago

Why a EV Lease?

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u/iLukeJoseph 1d ago edited 1d ago

I feel like there may be some confusion here. Or maybe I am the one confused. Do you still have the vehicle? If I am reading correctly, you probably don’t. You didn’t have gap, and have a 7k balance with the lending bank. That’s not negative equity, that’s an unsecured debt.

If that’s correct, maybe an F&I manager can answer. But can they use this balance, with no asset attached, and apply it to a new auto loan?

And they are saying an EV lease because most EV’s lease really well. Rebates, dealer discounts, high residuals and/or low money factors. You need the rebates/discounts to “absorb” the negative. And then of course want a low enough base payment so the 7k added on top is manageable. The challenge is if your 550 is accurate, it would be very hard to get a lease approved, or if so, the MF would be at the max, possibly killing the deal.

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u/Old-Nectarine-4580 1d ago

I did have gap but it expired because the loan was extended past the expiration date so it was no longer valid

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u/iLukeJoseph 1d ago

That wasn’t the question. Since it was totaled, insurance has it now correct? So you’re essentially asking if you can roll in 7k of unsecured debt into a new auto loan?