Total Loss Neg Equity

[u/Old-Nectarine-4580]

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?

[u/tooscoopy]

Can it happen? Yeah, with phenomenal credit and the right car/deal.

With poor credit? No. Would need a co-signer, and your situation screams “don’t co-sign with me!” (Mean no offence, just stating the facts).

How did a loan get extended to the point there is 7k owing, just of negative equity, at the principal termination? I just don’t understand how this could happen. Was it a balloon loan with only the first few years on the original term (and gap)?

[u/Old-Nectarine-4580 → u/tooscoopy]

I honestly have no clue. The payoff is actually $11k but my insurance is covering the difference

[u/tooscoopy → u/Old-Nectarine-4580]

talk with insurance and argue it. They are saying your car could be replaced for 4 grand? Can it? Go shopping for one and see if you can find one.

Being 7k upsidedown on a loan happens, but not usually this brutal on a write off. I don’t think any drivable car is replaceable for 4k, so figure out what credit they are actually giving for your car and tell them to show you where the replaceable one can be had for that.

I feel like there is more to this and you just don’t understand what is being said… happens, so don’t beat yourself up or anything, but you need to figure it out.

[u/Old-Nectarine-4580 → u/tooscoopy]

I know KBB put it around the same ball park

[u/tooscoopy → u/Old-Nectarine-4580]

Kbb trade in, private sale or what? As I said, go shopping online and find the closest comparables to what you had. If you can buy them for 4k, alright, guess they are correct. But if they are all more, try to get that (if you haven’t already done your release)… best of luck.