Totaling out a car - Will it effect credit?

Message Author
ampm-bookmark
delicious-small Add to delicious
yahoomyweb-small Add to YahooMyWeb
blinklist-small Add to BlinkList
PostPosted: Mon Oct 29, 2007 8:54 am   Post subject: Totaling out a car - Will it effect credit?  

I recently totaled my 05 scion tc. I put 4500 down on that car. The reck was not my fault. my insurance says that totaling out a car would enable them to pay me 13,645 . now i will end up owing like 1,100 left to pay it off. Which sux by the way. now i have no more money saved and i need a car asap. I have school and a job. will this reck help my credit at all sense there paying most of it off really fast. Will i be able to put less down. Because i had bad credit when i put 4500 down. How will this reck offect me.


_________________
Register Now to have your Insurance queries solved.
bksushi
Guest







PostPosted: Mon Oct 29, 2007 11:01 am   Post subject:   

I believe you can negotiate with your insurer a bit..as this would lead to a positive result. If you have a renter's policy....then you have to rent a car....n if the negotiation is proper...then i'm sure you'll get paid towards the rented car. Thanks, NormaHp


_________________
Register Now to have your Insurance queries solved.
NormaHp
Guest







PostPosted: Mon Oct 29, 2007 11:06 am   Post subject:   

Apparently, the car wreck shouldn't affect your credit score as long as you are update with the loan repayment. But if you fail to pay on time or made late payments then that may appear on your credit report.



However, the claim ( which will appear on your insurance claim report) is likely to affect your insurance score. Insurance score is an important determinant of your insurability. Therefore, you may have to pay high premium in future.


_________________
Register Now to have your Insurance queries solved.
Dazzlingdiamond
Guest







PostPosted: Mon Oct 29, 2007 11:11 am   Post subject:   

hi bksushi, IMO the best way find out about it is by inquiring at your state's Department of Motor Vehicle. You can check it out with them.



Btw, which state are you from? I hope some more informed community member will be able to help you in a better way.


_________________
Register Now to have your Insurance queries solved.
PaulaSaundars
Guest







PostPosted: Mon Oct 29, 2007 12:22 pm   Post subject:   

Good morning bksushi and welcome!



First off,

Quote:
If you have a renter's policy....then you have to rent a car....n if the negotiation is proper...then i'm sure you'll get paid towards the rented car
Not sure if I'm totally understanding this post, but if you have renters coverage, normally your company will only pay for the rental vehicle (subject to your terms and coverage there are like three different first party rental coverages) up to 72 hours after an offer of settlement you don't have to agree with the settlement just an offer...



Quote:
I believe you can negotiate with your insurer a bit..
This is correct there may be some 'room' for negotiation regarding your vehicles value...



Quote:
Therefore, you may have to pay high premium in future.


If the accident wasn't a 'chargeable' accident, and per your post,
Quote:
The reck was not my fault
, it was not, then you shouldn't suffer a rate increase based solely on this loss. Of course you have a claim, but that (assuming you are not ''claimy" tons of claims), will not in and of it's self trigger an increase.



Quote:
the best way find out about it is by inquiring at your state's Department of Motor Vehicle
I'm not sure what Paula meant by this what she was advising you to find out about. If it's the loan they will be of no use to you. I'm really not sure perhaps she will elaborate. Confused



Ok now to your post,
Quote:
I recently totaled my 05 scion tc. I put 4500 down on that car.
Good thing though, if you hadn't then you would be left owing, 5600.00 instead of 1100.00 right? Are you SURE that you do not have 'gap' insurance? Call your lein holder and ask them they will know, if you do that will cover this ''gap'' (you still have to pay your collision or comprehensive deductible of course).
Quote:
The reck was not my fault.
Why is the other insurance company not paying then? What happened in your accident? Unfortunately a lot of people say, 'the wreck was not my fault' and in their opinion it's not, but in the opinion of the investigators it is. This also makes a BIG difference regarding the question of a rate increase. Please provide that information.
Quote:
my insurance is totaling out my car and paying me 13,645 . now i will end up owing like 1,100 left to pay it off.
May be more than that actually did you take your deductible into account? or does this include your deductible, also they will pay you (maybe) and your lein holder, more than likely just your leinholder directly they will issue payment for your vehicles ACV (actual cash value) less your policy deductible. So if 13,645, is the amount after your deductible and then you owe 1100.00 really that isn't too bad, your deductible is what? 500? if so then you really are only left owing 600.00.
Quote:
Which sux by the way.
Mad yes, it does... and I'm sorry you are having to deal with this.
Quote:
now i have no more money saved and i need a car asap. I have school and a job.
If you have maintained your vehicle loan in good standing your leinholder will likely do a 'transfer of collateral' this means they will roll this balance (1100.00) on top of your new car loan. MAKE SURE you get gap insurance on this loan! You will minimally be 1100.00 upside down in the new vehicle. Had you not made that large down payment you would've (as I said) been 5600.00 or so upside down see?
Quote:
will this reck help my credit at all sense there paying most of it off realy fast.
It might, if it shows the loan being paid off way ahead of term. yes, but again, how were you on your payments? EVER late?
Quote:
Will i be able to put less down. becouse i had bad credit when i put 4500 down.
That will be solely up to the lender. Many new car dealers have 'no money down' or 10 bucks down to buy a new car. You need to get into contact with your lender and see if they will agree to make a loan, (including the balance owed on this one) on another vehicle ask them how much you qualify for and about the down. Explain your situation. This is why good credit is SO vital, if you haven't been good about your payments etc. they may not. But if you have been then there is a good chance they will help you out. A side note here you will also either get the cash (which might already be included in this 13k number) or a 'credit' for the sales tax on your new vehicle so you shouldn't have to pay any sales tax as long as you purchase your replacement vehicle for 13645.00 (plus your deductible) or less.
Quote:
How will this reck offect me.
It all depends, on facts of loss etc. Were you hurt? Exactly what happened in the loss?

Please give us more information, talk to your carrier, re:the value of your vehicle, do some research on line and see what the value you come up with. Review their evaluation make sure all options etc were taken into account. Was there any prior (not wreck related) damage to your vehicle?



Please provide more info and lets see if we can be of more assistance.
Lori
Forum Expert
Leave a quick message

Lori
Forum Expert

Joined: 10 Sep 2007
Posts: 8080

Location: Missouri
287.93 Dollars($)

PostPosted: Sun Nov 04, 2007 7:36 am   Post subject: Reply to some of your questions  

Umm. ok some of your information was helpful. This is how i know it was not myfault. A guy ran into my driverside back tired cousing me to twist to the left, i corrected to the right almost hit the wall then corrected back to the left making me spin. i ran directly underneath and 18 wheeler some how bounced out and spun,smashed into the side of the 18 wheeler. then spun some more then stoped. yea crazy. Ok at first the manager of the 18 wheeler company tried to file the claim as i ran into them. but the guy that hit me coused it. who ran away after. the person stopped then didnt even get out of their car. the 18 wheeler driver witnessed that and its in the police report. and i owe the 1,100 after the deductable. that is after every thing and thats wha i owe left to pay. so can i get that transfered over to a new car payment..


_________________
Register Now to have your Insurance queries solved.
bksushi
Guest







PostPosted: Sun Nov 04, 2007 9:41 am   Post subject:   

Quote:
This is how i know it was not myfault. A guy ran into my driverside back tired cousing me to twist to the left, i corrected to the right almost hit the wall then corrected back to the left making me spin. i ran directly underneath and 18 wheeler some how bounced out and spun,smashed into the side of the 18 wheeler. then spun some more then stoped. yea crazy




OH MY GOSH! Shocked bksushi ! That sounds like a scene in a bad action movie! man, are you lucky to be alive! WOW! Surprised

Quote:
wha i owe left to pay. so can i get that transfered over to a new car payment..
As I mentioned a lot of times if you are in good standing with your lender they will do this (transfer of collateral). Have you talked with them? What about retaining the salvage how did that go, or have you changed your mind, or vehicle was already gone to the yard? Or did your lender say no?



Let us know if we can assist any further, please talk to your lender, also what was the thing about the seven days in a rental?
Lori
Forum Expert
Leave a quick message

Lori
Forum Expert

Joined: 10 Sep 2007
Posts: 8080

Location: Missouri
287.93 Dollars($)

PostPosted: Tue Nov 06, 2007 4:23 am   Post subject: totaling out a car  

umm. i had a rental for about 12 days or so. then i had to pay for 96 of that.. not so bad i guess. but like what happens after totaling out a car, my insurance company already picked it up... it is out of my hands. so you guys say they will transfer collateral. but how much of a down payment will they expect me to give. i guess it depends on what car i get. but i dont have a few grand to give them as of now. i spent most of what i had moving to houston and transfering to U of H. so im broke. and basically screwed i guess


_________________
Register Now to have your Insurance queries solved.
bksushi
Guest







PostPosted: Tue Nov 06, 2007 5:35 am   Post subject:   

I read this from Lori's post...

Quote:
If you have maintained your vehicle loan in good standing your leinholder will likely do a 'transfer of collateral' this means they will roll this balance (1100.00) on top of your new car loan. MAKE SURE you get gap insurance on this loan! You will minimally be 1100.00 upside down in the new vehicle. Had you not made that large down payment you would've (as I said) been 5600.00 or so upside down see?




and then I saw that you asked further about this. Here is my 2 cents and don't take this personally.



You put $4500 down on a vehicle and _still_ owe $1000 after your insurance company is paying it's value? That tells me you paid way too much for the vehicle and/or had to pay out the nose on interest. Since you mentioned bad credit I'm going to assume what I've seen 100s of times in the past... you bought the vehicle from a buy here/pay here place or just got screwed because of your bad credit. Bottom line... you really could not afford the vehicle you bought (sorry).



Now you are looking to start the process all over again... except... this time your $1000 in the hole and without $4500 to put down! I think you see where I'm going with this. Now I _certainly_ understand that you may have no choice but to buy another vehicle. But you really need to make some tough decisions on how to get out of this hole your digging. Perhaps you could buy a lesser vehicle. Perhaps find a co-signer, maybe find a friend or relative who would sell you a car and allow you to make payments. Perhaps even consider taking the bus to work for awhile (shack) up with a good looking xxx who has a car Razz ).



It's late and I got up an hour early because I changed all the clocks in my house except my alarm clock... so I'm a little (lot) tired. I hope I did not offend and that this post made sence.



I'm going to bed now.
tcope
Forum Expert
Leave a quick message

tcope
Forum Expert

Joined: 22 Nov 2006
Posts: 6018

Location: Salt Lake City, UT
362.30 Dollars($)

PostPosted: Tue Nov 06, 2007 10:27 am   Post subject:   

Quote:
That tells me you paid way too much for the vehicle and/or had to pay out the nose on interest.
Tcope this was my thought as well. The thing is, how is it the Ins. companies fault, that your credit history has left you in such a place? You are truly in better condition than most people that are taken in by these 'we tote the note' car lots...many times I've seen, totaling out a car worth 3k with the people left owing 5k! THAT should be illegal!



Consider what Tcope advised, sounds like you are in school, how about living close to campus and getting a bike? Seriously! Make the commitment and sacrifice to clean up you credit. You'll be glad you did!
Lori
Forum Expert
Leave a quick message

Lori
Forum Expert

Joined: 10 Sep 2007
Posts: 8080

Location: Missouri
287.93 Dollars($)

PostPosted: Wed Dec 23, 2009 1:09 am   Post subject: WoW  

Im in a similar situation, i just totaled my Neon...blue book is only 3500, but i owe 4400....they havent made me an offer yet, but im so sick about it...the accident wasnt even my fault but im going to be left paying a high car payment (mine were only 120) becuase i only financed 6100...i went through CARMAX anyone dealt with their autofinance people on transferring collateral?


_________________
Register Now to have your Insurance queries solved.
KimmyLou
Guest







PostPosted: Wed Dec 23, 2009 12:54 pm   Post subject:   

If you have GAP insurance on your car..that will pick up the gap..if not then yes, collateral transfer is the only way. Most finance companies are more than happy to do this, assuming your account is in good standing..



_________________

"Never, never be afraid to do what's right, especially if the well being of a person or animal is at stake. Society's punishments are small compared to the wounds we inflict on our soul when we look the other way." Martin Luther King Jr.
Lori
Forum Expert
Leave a quick message

Lori
Forum Expert

Joined: 10 Sep 2007
Posts: 8080

Location: Missouri
287.93 Dollars($)

PostPosted: Wed Dec 23, 2009 1:05 pm   Post subject: insurance  

I was in the 'same boat' for a while, KIMMYLOU. Totaled my Jeep ( someone rear-ended me..of course, not my fault) and did ALOT of damage. I received the 'Blue Book' value for the car. I had an outstanding balance on the car loan, so, the check the Insurance company wrote out went toward the outstanding loan. I was working, etc. and really needed a car, too!!

sdchargersfan
Senior member
Leave a quick message

sdchargersfan

Joined: 21 Aug 2007
Posts: 2052


5.14 Dollars($)

PostPosted: Wed Dec 23, 2009 1:17 pm   Post subject:   

SD they didn't pay you blue book..NADA maybe but not blue book..(sorry a technicality that drove me a little nuts Wink )



_________________

"Never, never be afraid to do what's right, especially if the well being of a person or animal is at stake. Society's punishments are small compared to the wounds we inflict on our soul when we look the other way." Martin Luther King Jr.
Lori
Forum Expert
Leave a quick message

Lori
Forum Expert

Joined: 10 Sep 2007
Posts: 8080

Location: Missouri
287.93 Dollars($)

PostPosted: Wed Dec 23, 2009 2:33 pm   Post subject: insurance  

Oh....ok. I know they took a certain price of the Jeep. Subtracted the high milage, previous damage, etc. Where did they come up with the 'original' price value of the vehicle? I thought it was the 'Blue Book' value.

sdchargersfan
Senior member
Leave a quick message

sdchargersfan

Joined: 21 Aug 2007
Posts: 2052


5.14 Dollars($)

Quick Reply
Your Name
Subject
Message body
All times are GMT
1, 2  Next  
Page 1 of 2


Get a Quote
Ask Community Experts

flash plugin

Quick Links

Must See

Community

Hot topics in forums

Latest in blogs

AmPmInsure on Facebook



Page loaded in 4.036 seconds.