I’m looking to buy back my totaled car from the bank before the insurance company takes ownership. After an accident, my vehicle has been declared a total loss, but it’s still drivable with a working engine—it’s mostly just body damage. I currently owe about $5,500 on my loan. My plan is to buy the car back and then sell it for around $1,500.
The issue is that the insurance company tells me I can’t buy the car back from them due to the bank lien. If I pay off my loan right away, will the bank provide me with the title?
The insurance company claims that the vehicle remains the bank’s property until the loan is fully paid off, and then they plan to auction it. However, if I settle my loan with the bank first, would I be able to get the title instead of the insurance company?
I’m hoping to recover some salvage value to help fund a new vehicle. I understand the insurance company is looking to minimize their losses, but I feel I should be entitled to maximize the value from my policy. This seems like a reasonable approach.
It sounds like you’re in a bit of a complicated situation, but there may be a way to achieve your goal of buying back the totaled car and realizing some salvage value. Here are some steps you can consider:
Check with the Bank: First, contact your bank to understand their specific policies regarding the title and payoff of the loan. Ask directly if paying off your loan will allow them to release the title to you, and if they have any process in place for situations like this.
Pay Off the Loan: If the bank confirms that you can receive the title after paying off the loan, you could proceed to pay the outstanding amount of $5,500. Make sure to get written confirmation that the bank will provide you with the title once the loan is settled.
Contact the Insurance Company: After settling with the bank and obtaining the title, reach out to the insurance company again. Clearly explain your situation that you now hold the title to the car and ask about the next steps to avoid any issues regarding the salvage value.
Selling the Car: Once you have the title, you should be free to sell the car as you planned. Make sure you clearly disclose the condition of the vehicle to potential buyers to avoid any misunderstandings.
Consider Legal Advice: If any part of this process seems unclear or complicated, or if you encounter any resistance from the bank or insurance company, you might want to consider consulting with a legal expert who specializes in auto insurance claims or consumer rights.
Ultimately, it’s important to communicate openly with both the bank and the insurance company, ensuring that you follow their policies and procedures to protect your interests. Good luck!