I’m looking to buy back my totaled car from the bank before the insurance company takes possession. I want to make some money off its salvage value. I was in an accident, and while the insurance company has declared my car a total loss, it’s still drivable and the engine and front end are in decent shape—most of the damage is cosmetic. I have an outstanding loan of about $5,500 with the bank. My plan is to buy back the car for around $1,500 and then sell it to someone else.
However, the insurance company has told me I can’t buy the car back because of the bank lien. My question is: if I pay off my loan immediately, will the bank give me the title? The insurance company claims the bank retains ownership of the car until the loan is settled, at which point they would take the title and auction the vehicle. But should I pay off the bank directly before the insurance company, can I claim the title instead?
I’m eager to get some salvage value for the car to help with purchasing a new one. While I understand that the insurance company wants to minimize their loss, I believe I deserve to maximize the value of my policy. I feel this should be a feasible option.
It sounds like you’re in a complicated situation with your totaled car. Here are a few points to consider:
Paying Off the Loan: If you pay off your loan with the bank, you should be able to get the title of the vehicle. Once the loan is settled, the bank will release the lien, and ideally, you would own the car outright. Make sure to confirm this with your bank before proceeding.
Insurance Company Policies: The insurance company’s stance is usually based on their protocol when a vehicle is deemed a total loss. They might have a legal right to the vehicle as long as the lien exists. Once the loan is paid, you may be able to negotiate with the insurance company to redeem the vehicle before they take it to auction.
Salvage Value: If you can obtain the title, you could sell the car as-is for the salvage value, which you mentioned is around $1,500. Make sure you’re aware of any legal requirements for selling a totaled vehicle in your state, such as notifying buyers about its condition.
Communicate with Both Parties: It might help to draft a clear communication to both your bank and the insurance company outlining your intention to pay off the loan and seek the title. This transparency may help facilitate the process.
Seek Professional Advice: Consider consulting with a financial advisor or an attorney who specializes in auto insurance and bankruptcy issues. They can provide guidance specific to your situation and jurisdiction.
In summary, paying off your loan appears to be the correct path to reclaim your car. Just ensure that you have all parties on the same page to avoid complications. Good luck!