Cheap Monthly Car Insurance

Questions and Answers

Your Questions About Cheap Monthly Car Insurance For Young Drivers

July 3, 2013

David asks…

Would it be better to keep making payments on my totaled car, and use insurance money for a new one?

Here is the situation:

My car was stuck by a semi from the rear, and the truck driver’s company who has their own insurance company, has given me a check for the car, claiming it to be totaled.

This is where things get tricky, The company DOES NOT want my totaled car, stating the title will be delivered to the shop or person in possession of the vehicle, who happens to be me.

Now I have my car which has sever damage done in the rear driver side, and a check for the car in an amount to pay the entire loan off. The damage to the car can be fixed, and the car is drivable and also has a brand new engine.

Another twist to the story is that I am moving in a couple of months (mostly delayed by the fact that i have physical therapy to attend) And otherwise have cut off most of my ties to my current hometown, and in desperate need of a vehicle.

The vehicle i planned on purchasing next is priced at $5,400 but the dealer said he would give me a better deal if i decided to pay cash instead of financing. My car loan is currently $7,493, and the check i am receiving for the car is $7,700.

Now this car was my first major purchase, and besides a credit card, a cell phone, I have nothing else in my name, and did not qualify to finance the motorcycle with the price at $5,400 without a co-signer.

Now I am only 20 yrs old, and have had my car for 2 whole years this July. Would it be better for me to pay the loan off on the car, then try again to apply to be financed on the bike, or to take some of the payment for the car to buy the bike outright, use whats left towards the loan and continue making monthly payments of $230.

In my eyes either way I will have a car note, and I am moving to Hawaii (for school) So the car was never in my plans to begin with, and now I would have a payed for car that i was going to give to my dad (who owns the shop) to fix for my younger brother anyways. And I was going to ship my bike over because cost of bike + shipping is still cheaper than total cost of the bike in Hawaii.

And I don’t know much about it, but would I in any way qualify to refinance the car, say if I did make a lump payment of $2,000 or $3,000 bringing the loan down to $5 or $4,000 would that help lower payments any?

Thanks in Advance for any and all help!!

Administrator answers:

You have to 1-pay off the old car with that money and get rid of it or 2-use the money to get it fixed and keep paying teh loan. If you do not do one of these, you will be facing a nightmare with the loan company – they could call the loan due anytime if they find out the car is totalled. And if you spend that money on another car, you will be in major trouble.

If you are moving to Hawaii in 2 months, and the car is drivable – pay off the loan – keep the car until you move and then sell it – to a junk yard if necessary – it will cost a fortune to move a car to Hawaii – DO NOT buy a new car before you move

Powered by Yahoo! Answers

Related posts:

  1. Your Questions About Cheap Monthly Car Insurance For Young Drivers
  2. Your Questions About Cheap Monthly Car Insurance For Young Drivers
  3. Your Questions About Cheap Insurance For New Drivers Young Drivers
  4. Your Questions About Cheap Monthly Car Insurance New Drivers
  5. Your Questions About Cheap Insurance For New Drivers Young Drivers