Totaling a car is panic-worthy enough, but when you still owe on the auto loan, your level of anxiety can reach alarming levels. Fortunately, there are options available to help you make it right once again. Continue below to learn what to do if you still owe on a totaled vehicle, plus how to earn fast cash for your junk car in Cincinnati.
Brief Explanation of a Total Loss Vehicle
Although it can vary from state to state, a car is deemed totaled if it meets one or more of the following circumstances: 1) the cost to repair it exceeds the actual cash value (ACV), 2) repairing it would be dangerous, or 3) it meets the state’s total loss guidelines. So, you know your car is totaled, but you still owe on the car loan. What do you do? Well, you have at least 3 viable options. The course you choose will depend on your current economic condition, state regulation, and the discretion of the insurance company.
How to Deal With a Totaled Car You Still Owe Money On
► Pay Off the Remaining Auto Loan Balance
An auto loan or financing agreement does not disappear when a car is totaled. Unfortunately, you are still legally obligated to pay. Sure, paying off the remaining auto loan balance is easier said than done, but nonetheless, a viable option worth mentioning. By satisfying the remainder of the loan or financing plan, you can avoid any future financing problems or approvals. You can either pay the balance in full or continue making your regular scheduled payments.
► Negotiate a Deal With the Insurance Company
If you cannot afford to pay off the auto loan or have barely made any payments as of yet due to it being a brand new car, you might be able to strike a deal with the insurance company. Do your research to see how much your car’s actual cash value is using trusted, certified sources like KBB or Autotrader, then use this data to prove that your vehicle is worth more than what the insurance company is willing to pay.
What NOT To Do
The above two options are what you can do after totaling a vehicle you still owe on, but there is one thing you should not do. It is strongly discouraged to roll the remaining auto loan balance into a new loan. This will only increase your interest payments, making it harder to pay it off in a reasonable time frame. Keep your auto loan and other loans separate.
If you are not happy with the insurance company offer for your totaled vehicle, sell it for cash on the spot to a trusted Ohio auto salvage yard! Contact GC’s Junk Cars at 513-991-4776 for professional cash for totaled cars in Cincinnati Ohio. We provide free junk car removal and instant offers! Request a free offer today!