Overhaulin'

Is there a way to roll over the debt from my last car into a new loan?

My car was just totaled out and now I cam currently up-side down on my car. I don't have GAP insurance (yes I have learned a big lesson). I need to get another car, because it is crucial for my work and home life. I need to figure out the best option for me refinancing my old loan and taking out another car loan. I am so stuck between a rock and a hard place.

Public Comments

1. Ask the dealer to work that money into a new loan. Your best bet is to find something with rebates, that give the dealer more lattitude to pay off more.
2. I think the best thing to do is go to a dealership that offers to pay off your old car loans. It will raise your rates a bit but at least it would be all bundled into one,plus your old car gets paid off and you get another one.
3. If it was totaled out, you no longer have it to trade in, so a dealer can't be of any help. If you have stellar credit, you might be able to borrow enough from a bank to fiance another car and pay off your existing loan, otherwise you will just have to keep making payments until the balance reaches zero.
4. Depending on how upside down you are I would do as Jay suggests. Find a car with a big rebate and roll the negative balance into the new loan. Now if you're way upside down you may have trouble getting financing...banks don't like to finance more than 125% of a car generally. But as long as it's a reasonable amount you should have no problem. Go to Edmunds.com and look up current rebates on cars you might be interested in....and get that GAP next time.
5. Yes you can. Some banks will advance up to 140% or more of a cars value. This means if you trade in your car, and the car you are buying is worth $10,000 and you are upside down $4000 they may be able to get the bank to advance the entire amount. CREDIT is the key in this scenario. The better your credit is the more likely a bank will let you barrow more money than the value of the car. For the most part, I would look for a vehicle that had a high rebate, that was still in a price range you could afford. The rebate should help eat up your negative equity, plus if you are able to put some money down that also will help. Remember that even if you have enough rebate to cover your negative equity, that you are still going to be financing your Tax Title and License, all of which might be limited on the loan from the bank. You need to go in and talk to dealer that you feel comfortable doing business with. They should have enough lenders to find a solution to solve your problem. Keep in mind though that you are going to have higher payments because of the negative equity. For instance if you are adding $5000 to the loan, your payments will be about $100 higher than if you did not have that added to your loan. Word of advice. Most dealers will offer products to protect you from the unknown. Most people say "NO I DONT WANT THAT" before they even hear what it can do for them. I am not saying you need to buy everything, but it may be advantagous to ask, "What can this do for me?". Gap insurance is usually just an addition of a few dollars a month. Money you will blow anyway, if you spend that money on a car payment it is budgeted and you just keep going on, but if you don't you can get caught. The best option would be to find a rebate, and buy a car, the dealer will make it work. That is what they do. Richard Finance Director Chevy, GMC, Pontiac, Isuzu, Kia, Hyundai
6. You can't refinance your old loan. Since the car is totaled, the old loan must be paid off, completely, including your negative equity that insurance didn't pay. Then, you will start all over again with a new car and new loan. Some other posters may have misread your question. You do not have a car with negative equity to trade. You have no car. Your car is totaled and is now the property of your insurance company. You cannot roll over your old loan's negative equity. You can't get personal loans by having a dealer overcharge for a new car. For other people reading your question, an explanation. When you are upside down on your loan, as many people are, they risk a serious financial hit if their car is totaled or stolen. Insurance only pays the value of the car, not what is still owed on the loan. The solution: 1) don't let yourself get upside down, 2) get GAP insurance.