Car is Totaled and I Still Owe On It, Now What?

Car accidents are always unwelcome. Even if you’re willing to walk away from the accident, you’re still stuck with the issue of needing a car. The only thing that makes this worse is when the car in question is one you still owe on. This can be a particularly awful situation. You need a new car, but you still have to make payments on a car you can no longer use. Read on for some ideas on what to do.

Talk to Your Lender

If you owe on your car, you’re still making payments to a lender. In that case, what you should do first is consider speaking them. The lender understands there is no longer a car to repossess. So all they want is their money. While they might decide to proceed with collection efforts on you, most lenders are probably smart enough to realize this could convince you to file bankruptcy, in which case, they’ll see no money.

As such, they might be open to the idea of refinancing your loan. They’re still going to want their money, mind you, they’ll just give you other options for paying it. Furthermore, given that you’re asking for help because of a situation beyond your control, they might be more understanding.

Consult a Debt Management Specialist

You can also contact a specialist in debt management. Everyone has piling amounts of debt these days, sadly, so there are plenty of experienced specialists out there who can help you.

They may offer one of a number of solutions. For example, they may volunteer to contact your lender for you and try to work out a deal on your behalf. Another option would be looking at other areas where you have debt and seeing if there are solutions for minimizing those as much as possible.

Debt management specialist might also know of companies who would purchase your debt from the original lender. They’ll still expect to get paid, but you may obtain better terms.

Consult Your Insurance Company

If you had car insurance, you’ll at least get some money for your car. Most likely, however, the problem you’re facing right now is that the insurance payment wasn’t enough to cover what you owed (if you lack gap insurance, for example).

Don’t immediately apply the insurance payment to paying off the car until you know all your options. Instead speak to the insurance company, explain your situation and see if there are options. More than likely this won’t do much, but consider telling them you’ll be buying your insurance elsewhere and see what happens.

Go to a Salvage Lot

A totaled car is no good to anyone except a salvage lot. They’ll pay you for your totaled car which you can use to cover your current situation. At Cash Auto Salvage, we pride ourselves on offering top dollar, in cash, for your totaled vehicle. We’ll even pick it up from you and you don’t even need the keys or title.

While you’re in a stressful time right now, keep your head and consider the above options. Try them all and you’ll be much better off.

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About the Author



Marc is the Co-Founder of Cash Auto Salvage and Director of daily operations. He retired from a leading Internet Marketing company in 2013 and has been involved in the automotive industry ever since.

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