What should I do if I am upside down in my car loan and had a total loss accident?

My husband and I have a car throught JDBYRIDER/CNAC. We all know they are a rip-off company. My husband got into a wreck and since the 2000 neon was worth way less than the repaires the insurance company called it a total loss. The finance company has received way more than what the car was worth through us making timely payments and the payment from the insurance sompany. Now, we still owe $4,400 for a car we do not have. Should I just not make any more payments and let them takes us to court? We had to finance another vehicle and did not want to do so with them but I cannot afford to pay both the new payment and the payment for a car ($312-monthly) that I do not have. Any advice??????/

What should I do if I am upside down in my car loan and had a total loss accident?

If you don%26#039;t have GAP insurance, obviously you don%26#039;t, you are on the hook for the balance. If you don%26#039;t pay your credit will take a hit. Apparently your credit is less than perfect anyway or you wouldn%26#039;t have financed where you did. There are no debtors prisons in this country. You had a car loan. The collateral for a car loan is..THE CAR. Period. If they took you to court the best they could get is a judgement in their favor with a personal lien against you. That costs money and more money each year for them to keep the lien recorded. They already have a lien against you in the form of the title to the car. They can have the car if they want it. To summarize: they will not take you to court. Your credit will show a charge off for the balance and possibly a repo depending on how they report it, (you can challenge the repo report), They will threaten you with some calls and letters. I know that you%26#039;d prefer to do what is right but you can%26#039;t. You must do what you feel you have to do. The reason they demand such high interest is to offset some losses that will come their way. One just hit them. Don%26#039;t be bullied. They can%26#039;t do squat. You%26#039;ll see one heck of a war dance, but you%26#039;ll never see the war.

What should I do if I am upside down in my car loan and had a total loss accident?

This is why they have GAP insurance, to cover the gap between the cars value and the balance of the car note. It doesn%26#039;t matter how much you%26#039;ve paid them thus far. The interest you paid is the cost of using their money to buy it. You will still owe whatever the difference is between the insurance payoff and your loan balance. You can refuse to pay the rest, but it%26#039;s going to further damage your credit and you%26#039;ll end up paying it anyway, plus court costs, because you can%26#039;t win this one.

My son was in a hit-run accident 2 years ago, which totaled his 2004 Neon. Unbeknownst to me, my son had no insurance. He still has a year and a half to pay on a car he hasn%26#039;t seen since September 05.