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/JRGonzo89 Former Toyota and Scion Sales 1d ago

Gap doesn’t expire, you were in breach of your policy by either not making payments or being behind on your payments .

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u/Old-Nectarine-4580 1d ago

Well…the people that worked at my gap insurance says it expired

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u/ryangilliss Retired Dealer 1d ago

GAP coverage mirrors the term of the loan. Did you refinance by any chance?