Quote:
Originally Posted by Greer
Quote:
Originally Posted by SpeedyDad
I put $75k down and financed $45k @ 3.5%
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Question about financing a car, so for the owner who puts down $75K, what happens if your car is totaled shortly after you get it? Does the insurance company give you another $75K to finance a new car? Or is that money gone? Curious, I don't know how car loans work when there's a total loss of the vehicle.
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With a total loss the insurance company will typically pay the replacement value of the vehicle.
This is why some people purchase something called gap insurance, which pays the difference between the appraised value of the car and the amount of money you might actually owe in case you put nothing down and are upside down on the loan.