I’m looking to buy back my totaled car from the bank before the insurance company takes possession. I want to capitalize on its salvage value since the car is still drivable, and the engine and front end are mostly intact despite the extensive body damage from the accident. I currently have an outstanding loan of about $5,500 with the bank, and I intend to buy the car back to sell it for around $1,500.
However, the insurance company has informed me that I can’t buy the car back due to the lien held by the bank. I’m wondering if I pay off the loan right away, will the bank provide me with the title? The insurance company tells me that as long as the loan is unpaid, the car belongs to the bank, and they will take the title to sell it at auction.
If I manage to pay the bank before the insurance company does, would I be able to get the title instead of the insurance company? I definitely want to recover some salvage value from the vehicle to help fund a new one. I understand that they want to minimize their losses, but I believe I should be able to maximize my compensation from my policy. This seems like a reasonable thing to do.
It sounds like you’re in a tricky situation, but let’s break it down. The insurance company’s stance makes sense; since there’s a lien on the vehicle, they may need to settle that debt before allowing any changes in ownership.
If you decide to pay off the outstanding loan with the bank, you should be able to get the title of the car. Once you have the title, you would technically own the vehicle outright, which may allow you to sell it for salvage value.
However, there are a few important considerations:
Confirm with the Bank: Before making any payments, check with your bank. Ask them directly if paying off the loan will allow you to obtain the title and confirm how quickly they can provide it after the loan is settled.
Communicate with the Insurance Company: Let the insurance company know your plan to pay off the loan. They may have specific protocols for this situation, and it’s important to keep them in the loop.
Legal Considerations: Depending on your state laws, there might be stipulations regarding owning a totaled vehicle, especially if it’s been deemed salvage. Ensure you understand any legalities involved before proceeding.
Selling the Car: If you do end up with the title, assess the repair costs versus the potential sale price realistically. Selling a totaled car can be tricky, and you want to ensure the effort is worth the profit.
It’s definitely understandable that you want to recoup some value from your car, so being proactive here is a good move. Just make sure you have all the necessary information before taking the plunge. Good luck!