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What if the company that repoed your vehicle sells it for less than you owe?
Asked in Law & Legal Issues
Where do you stand if repossessed truck is sold for less then the loan?
Asked in Cars & Vehicles, Repossession, Sales Tax
How much does a repossessed vehicle sale at action?
Asked in Repossession, Credit Reports, Credit
When a car gets repoed and sold at an auction for less than its value can the leading company put a lien on your credit report for the balance?
Asked in Repossession, Income Garnishment
If you have a voluntary repossession and the vehicle sells for less than owed can the lender garnish your wages for the difference?
Asked in Auto Insurance
Can you get insurance on a reconstructed title car?
The insurance company will not know that the vehicle has been reconstructed unless you tell them up front. The problem comes if you have an accident or claim which totals the vehicle. The value of a vehicle that been a total loss is far less than a vehicle that has not so the company will evaluate the value of your vehicle at a far lower amount when time to pay you in a total situation. This is a fact that you need to be aware of in case you do total the vehicle again. The company is obligated to pay you the value of the vehicle at the time immediately before your accident. This is fair as you pay far less for it versus buying an undamaged vehicle but you will pay premiums the same as anyone else.
Asked in Auto Insurance
What does the insurance company do when a car is not total in a wrecked?
If a vehicle is damaged in an auto accident the insurance company that insures the vehicle has the option to repair it, replace it, or pay the actual cash value of the car. The last one is in the case of a total loss and the company never tries to replace a vehicle anymore. In this case it would repair the vehicle and pay for the cost of repair less your deductible which you will be responsible to pay for yourself.
Asked in Auto Insurance Claims
What do you do if it costs more to fix a wrecked automobile than the vehicle is worth?
What does the Pep Boy auto company do?
Asked in Law & Legal Issues, Repossession, Liens
What happens after a vehicle is repossessed?
The lender sells the vehicle, sometimes at auction. They attempt to get whatever they can for it. Often the price the lender gets is less than the outstanding loan. If the lender gets less for the vehicle than the amount that is owed, the lender will seek the balance (the difference between what was owed and what they sold it for) from the borrower. So, lets say you bought a car for $1000. You quit making payments. You still owed $800 when the vehicle was repo'd. The lender sells the vehicle at auction and gets $500 for it. The lender will come after you for the remaining $300. That's pretty much how it works. Bottom line: make your payments. This is where aflac comes in handy.
Asked in Repossession
What happens when 2008 car is repoed?
You will have a certain amount of time to bring the loan current and get your car back. Otherwise it will be auctioned off, if you are lucky enough and the car auctions for at least what you owe on it, you will only have to deal the with scar of a reposession on your credit. If it sells for less that what you still owe on the loan, you are responsible for paying that back.
Asked in Auto Insurance, Auto Insurance Claims
Does gap insurance cover a vehicle that's insured when in accident?
No, you are misstating what GAP coverage is. GAP insurance is a separate type of insurance that you can purchase as part of your finance agreement or on your personal auto insurance. What GAP does is pay the difference in what your insurance company pays and what is actually owed on the finance account for the vehicle. This is especially important when a vehicle is newer. An auto insurance policy pays either the cost of repair, replacement of the vehicle, or actual cash value of the vehicle at the insurance companies option. If the vehicle is totaled they pay ACV which on a fairly new vehicle is less than the purchase price. Purchasing GAP insurance is usually far less expensive when purchased from your insurance company than the finance company.
If your car is declared a total loss how much will the insurance company pay back to you if the car was purchased below book value?
Asked in Insurance
How is Esure's car insurance's policies?
If you are looking for an insurance company that is customer friendly, Esure is the company for you. They provide a complimentary coutesy car if something were to happen to yours, they will replace your vehicle, if less than a year old (if there is a high percentage of damage to yours) and you are covered if your vehicle were to catch on fire or if stolen.
What will happen if you give the car back but put sugar in the tank or ruin the transmission or damage the car?
The vehicle will be taken to the auto auction and if it sells for anything less than the amount that you owe on the note will still be your responsibility. If it is determined that you deliberately sabotaged the vehicle you can be prosecuted for damaging property that is owned by someone else. Yes, the vehicle is "owned" by the lending institution as soon as the court grants the vehicle repossession.
Asked in Insurance, Auto Insurance
Does comprehensive auto insurance pay off and replace the vehicle in the event of auto theft?
Comprehensive is the coverage that would pay for the theft of a vehicle. The policy spells out the insurance companies options on payment. On any claim, the insurance company has the option to repair, replace, or pay the actual cash value of the vehicle in the event of any loss. Generally they do not replace a vehicle but pay the actual cash value less your deductible then allow you to purchase a replacement vehicle. As a matter of full disclosure, I own and operate a small Independent Insurance Agency and have for the part 22 years. Before that I worked as an agent for a direct writer insurance company. As for the payoff of the loan on the vehicle, the insurance company will have to issue payment to the bank up to the amount owed on the vehicle. The amount they pay has nothing to do with the balance on the loan. If you owe less than the ACV then the balance will be paid to you. If you owe more than the ACV then you will have to pay the difference to the bank or finance company.
Asked in Insurance, Auto Insurance Claims
If a vehicle has 'full coverage' and is stolen how much will the insurance company pay out?
Asked in Smoking and Tobacco Use
For what reasons is an anti-smoking ad produced by Philip Morris likely to be less shocking than one produced by the American Legacy Foundation?
Asked in Auto Insurance
How can a person take a car away from someone who doesn't have auto insurance?
I assume you mean a repossession of a vehicle if you let your insurance cancel. When you purchase a vehicle and finance the cost of the vehicle you sign a legally binding contract. One of the terms in the contract is always that you must carry physical damage auto insurance payable to the finance company if the vehicle is a total loss or damaged. If you fail to keep this insurance you have broken the contract and the vehicle is subject to repossession and you may be sued for additional damages if the value of the vehicle is less than the amount owed to the finance company.