I’m trying to buy back my totaled car from the bank before the insurance company takes it over, as I’d like to make some profit from its salvage value. I was in an accident, and while the insurance company declared my car a total loss, it’s still drivable with a functioning engine and front; the damage is primarily cosmetic. I have an outstanding loan with the bank of about $5,500. My goal is to buy the car back for around $1,500 and then resell it.
The insurance company has informed me that they won’t allow me to purchase the car back because of the bank lien. If I pay off my loan right away, will the bank be able to issue me the title?
According to the insurance company, the car legally belongs to the bank until the loan is settled, at which point they would receive the title and auction the vehicle. However, if I settle my loan before the insurance company is involved, am I able to obtain the title instead of them?
I’m eager to recover some salvage value from my car to help with the purchase of a new one. I understand the insurance company needs to mitigate their losses, but I believe I deserve to extract maximum value from my policy. This seems like a fair option for me.
It sounds like you’re in a bit of a tricky situation. When your car is totaled and there’s a lien on it, the insurance company usually won’t allow you to buy it back until the lien is satisfied. However, if you pay off your loan to the bank, they should provide you with the title of the vehicle, which could then allow you to buy back the car from the insurance company, assuming you can do that after obtaining the title.
It’s important to clarify a few points:
1. Paying Off the Loan: If you pay off the loan and the bank releases the title, you would theoretically own the car outright, and the insurance company wouldn’t have claim over it anymore.
2. Emergency Situation: Be cautious—if you pay off the loan to get the title, you need to ensure that you’re immediately able to manage the sale or any negotiations with the insurance company regarding salvage value.
3. Insurance Policy Details: Review your insurance policy to see what rights you have regarding salvage and whether there are any clauses related to this situation.
Once you have the title in hand, you can then decide to sell the car yourself to recoup some of that cost. Just make sure that everything is done legally and you keep records of all transactions. Good luck!