Hey guys I have a tesla model 3 2021 that was just met with an accident. It looks like the car will be totaled. The car works and drives fine the back side and front side are damaged and the cost to fix is gonna be 31k. I got the car as a loan from tesla financing and paid off 10k on it so far. I’m scared if the car is totaled the check will go to the lender which means I have to start from scratch and get approved from tesla financing again. The first time I ordered my tesla it was hard I got denied from a lender and then tesla ended up approving me. That was in 2021 when it was only 35k and interest rates were low. I’m scared now because the prices are a lot higher now intrest rates have changed and my credit is stil the same. How can I maneuver this? If the insurance gave me the check for 35k I could easily buy a used tesla m3 and be on my way. But from what I hear they only way the lender. I would hate for insurance to total my tesla take it away and then end up getting denied from tesla financing. Now I have nothing. I would rather have a scratched up tesla than no tesla! Help what can I do to Maintain my position. I was thinking if they want to total it then instead of gambling on tesla financing I can get the front bumper repaired for 10k and call it a day and still keep my tesla. Is it possible for insurance to find mee a similar tesla and just replace it with that if they total it? Or is there a way to guarantee with Tesla financing that I will be 100% approved for a new Tesla if they total it? Can I force the insurance to give me the check isnrtwd if my lender and get a tesla in my own again? I’m super scared to total the car release it and not have the banks fiancé me a new one leaving me with no tesla or car I only want to drive tesla because it’s amazing so no other car is an option here
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Scared I may not get approved for tesla financing again after total loss settlement
- Thread starter Lavish P.
- Start date
Also if the insurance wants to total it and put me in a hot spot where I have to gamble on if I’ll be approved by Tesla financing is it possible to deny their total settlement and force them to repair it? Or deny everything completely and fix the bumper on my own out of pocket for 10k and keep it moving? Car still works 100% fine so I’m ok with paying out of pocket to fix the front if that means I get to keep the car and be left with nothing at all
ucmndd
Well-Known Member
No, you cannot “force” your insurance company to give you the money instead of your lien holder.
The lien holder owns the car. Their interest comes first. Whatever is left goes to you.
I suppose you could try and cancel the claim altogether and just take the car back as-is to fix or not fix at your discretion, but your entire approach to this challenge you find yourself in is not really aligned with reality.
The lien holder owns the car. Their interest comes first. Whatever is left goes to you.
I suppose you could try and cancel the claim altogether and just take the car back as-is to fix or not fix at your discretion, but your entire approach to this challenge you find yourself in is not really aligned with reality.
Nope, that is not how it works at all. First off, if the insurance company decides to total the car, the insurance company will write a check for what they deem the used vehicle value to be. Your loan value a the amount you originally paid no impact on what the insurance pays. None. It will be based on what you could buy a different 2021 model just like yours for today. If you own more on the car than insurance valued the car at, you will still owe the loan holder that difference. If you have GAP insurance, that insurance will cover that difference. If not, you owe money on a car you don't have. The insurance company now owns the wrecked car. Some will allow you to buy it from them in some situations, but not all. If you car's value was determined to be greater than the value of your loan, you will get that difference as a check.
My concern is that you said to begin with you were denied and seem to be worried about being accepted again. If you were denied, you likely were taking a loan out for a higher ratio of LTV or lawn to value ratio which increases your risk in a lenders eyes. If you put half the car's value down, the bank sees that as low risk as you are less likely to default and walk away from that investment, and if you do, they have a car worth more than the loaned amount. If you borrowed 100% of the cars value on a long loan and the car depreciates, for the beginning of the loan your car will likely be worth less than the loan which is risky for them. If you default or crash at the beginning of the loan, they could end up with a car worth thousands less than what they loaned on the car. If your loan was $35K and. you have paid off $10K leaving a $25K principal balance with the loan holder, you maybe okay. However, if you bought it for $35K but rolled in $5K of negative equity from your last car, plus taxes and fees and had a $43K loan, and have made $10K in payment s but only paid off $7K in principal because of interest, than you still owe $36K and insurance is not going to cover the full amount of the loan as I'd image the insurance would view a 2021 M3 SR to be somewhere in the twenties after the recent price cuts.
If the car is worth more than your loan, you can chose to use that money as a downpayment on a new car and will need to take out a new loan. Banks are more conservative right now and have tightened their lending standards. LTV ratio's got pushed up from 80% in the past to 100% to 120% all the way up to 140% at some places at the height. Then he banks all realized they were being crazy and have dropped that ratio they are willing to lend to. The same 720 credit would have gotten approved to roll $5K of negative equity from a prior loan in the past will no longer find anyone willing to make that loan. If you don't have negative equity this time, that might not be a big deal like it was the first loan. However, if you owe more then the last car was worth and still need to make payments on the wrecked car, they will figure that into your debt to income ratio. One thing definitely working in your advantage is that you have been making payments since 2021. That will have built your credit since you were originally approved. They can see that have been paying for the car and that makes them more comfortable lending again. If all things are equal and you qualified for a loan in 2021, you would qualify today having a better credit record for having made payments for over a year. All things will almost certainly not be equal though and it is hard to say for sure based of the info provided. I should say, if your loan is greater than your insurance value and you need to payoff the difference, the bank won't be able to repossess anything if you don't pay and your new lender won't know at first. However, next time you go to get a loan, that will be viewed like defaulting on your prior loan and you will have a hard time getting a loan and will pay a significant premium in higher rates when you do get one. I've been told stories of people who did not pay $1,500 off on loans like these that then end up paying over 10% more interest on following loans. If you have a $40K loan, that is $4K extra in interest just in the first year. So even if you're thinking you don't want to continue to pay for a car that was wrecked and they can't repo so they may as well stop paying, you could end up shooting yourself in the foot with much higher rates later.
My concern is that you said to begin with you were denied and seem to be worried about being accepted again. If you were denied, you likely were taking a loan out for a higher ratio of LTV or lawn to value ratio which increases your risk in a lenders eyes. If you put half the car's value down, the bank sees that as low risk as you are less likely to default and walk away from that investment, and if you do, they have a car worth more than the loaned amount. If you borrowed 100% of the cars value on a long loan and the car depreciates, for the beginning of the loan your car will likely be worth less than the loan which is risky for them. If you default or crash at the beginning of the loan, they could end up with a car worth thousands less than what they loaned on the car. If your loan was $35K and. you have paid off $10K leaving a $25K principal balance with the loan holder, you maybe okay. However, if you bought it for $35K but rolled in $5K of negative equity from your last car, plus taxes and fees and had a $43K loan, and have made $10K in payment s but only paid off $7K in principal because of interest, than you still owe $36K and insurance is not going to cover the full amount of the loan as I'd image the insurance would view a 2021 M3 SR to be somewhere in the twenties after the recent price cuts.
If the car is worth more than your loan, you can chose to use that money as a downpayment on a new car and will need to take out a new loan. Banks are more conservative right now and have tightened their lending standards. LTV ratio's got pushed up from 80% in the past to 100% to 120% all the way up to 140% at some places at the height. Then he banks all realized they were being crazy and have dropped that ratio they are willing to lend to. The same 720 credit would have gotten approved to roll $5K of negative equity from a prior loan in the past will no longer find anyone willing to make that loan. If you don't have negative equity this time, that might not be a big deal like it was the first loan. However, if you owe more then the last car was worth and still need to make payments on the wrecked car, they will figure that into your debt to income ratio. One thing definitely working in your advantage is that you have been making payments since 2021. That will have built your credit since you were originally approved. They can see that have been paying for the car and that makes them more comfortable lending again. If all things are equal and you qualified for a loan in 2021, you would qualify today having a better credit record for having made payments for over a year. All things will almost certainly not be equal though and it is hard to say for sure based of the info provided. I should say, if your loan is greater than your insurance value and you need to payoff the difference, the bank won't be able to repossess anything if you don't pay and your new lender won't know at first. However, next time you go to get a loan, that will be viewed like defaulting on your prior loan and you will have a hard time getting a loan and will pay a significant premium in higher rates when you do get one. I've been told stories of people who did not pay $1,500 off on loans like these that then end up paying over 10% more interest on following loans. If you have a $40K loan, that is $4K extra in interest just in the first year. So even if you're thinking you don't want to continue to pay for a car that was wrecked and they can't repo so they may as well stop paying, you could end up shooting yourself in the foot with much higher rates later.
Lol what? Leasing is a different story ?
How do you figure ? They will still come and take the car, so how is it any different ?
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