I’m looking to buy back my totaled car from the bank before the insurance company takes ownership. I had an accident, and while the insurance deemed my car a total loss, it’s still drivable and the engine and front are in good condition—most of the damage is cosmetic. I currently have an outstanding loan of about $5,500. My plan is to buy the car back and sell it for around $1,500.
The insurance company informed me that I can’t buy the car back because of my loan with the bank. If I pay off my loan right away, will the bank provide me with the title? The insurance stated that as long as I owe money, the car technically belongs to them, and once the loan is paid, they would take the title and auction the vehicle.
However, if I pay the bank off directly before the insurance process is complete, will I be able to get the title instead of the insurance company? I want to salvage some value from my car to help fund a new one. While I understand the insurance is trying to recover their losses, I believe I should be able to get as much value as possible from my policy. This seems like a reasonable request.
It sounds like you’re in a challenging situation, but here are a few steps to consider that might help you navigate it:
Contact Your Bank: Reach out to your bank and ask them directly about the process of obtaining the title after paying off your loan. Explain your situation and express your intention to buy the car back for salvage. They should clarify whether paying off the loan will give you access to the title immediately.
Discuss with Insurance: It’s important to keep the lines of communication open with your insurance company as well. Clarify their process regarding the total loss and find out if there are any options available for you to reclaim the title after settling your loan.
Understand the Lien: The lien on your car means that the bank has legal rights over it until the loan is fully paid. If you pay off the loan, you should technically receive a clear title (if the bank agrees), which would allow you to sell the car.
Negotiate: If the bank is not willing to give you the title even after you pay off the loan, consider discussing the terms or asking if there’s a way to expedite the process. Make your case for why it’s beneficial for both parties if you can salvage the car.
Selling the Car: If you successfully get the title in your name, ensure to follow local laws and regulations when selling the car, even for parts or as a salvage.
Consult a Professional: If things are complicated, you might want to consult with an attorney or a financial advisor who specializes in auto insurance and liens. They can provide personalized advice based on your specific circumstances.
Remember, keeping records of all communications with your bank and insurance company is essential. Good luck, and I hope you can sort this out in a way that allows you to recoup some value from your car!