Car Loan: What If It Crashes During The Term?

Reading time 7 Min.

If you're into a Accident get involved, that's basically a Problem. If the car in question is still part of a ongoing funding is, that is for improving the existing problem not just beneficial. Because now is not just dealing with that Opponent in the accidentbut also dealing with the Banks necessary. Tuningblog explains everything you need to know about the problematic topic in the following article.

Who is to blame for the accident?

If the The question of guilt is clear and you save You do not need to worry too much, because in this case it is the duty of the other party involved in the accident or that of himself Liability insurance, all costs you incur as a result of the accident cover. This includes both the cost of the Repair, Costs that may be for a lawyer are due and those costs that may arise because of you Replacement vehicle need. However, you may be faced with the problem that an accident has a Depreciation for your vehicle means - regardless of whether there are still any traces of the accident to be seen in retrospect or not. If you are still stuck in a financing and plan to get the car at the end of the term return or to merchandise, you have a financial Disadvantagebecause it is a Accident vehicle concerns.

The appraiser determines the loss of value

If it's a considerable damage acts, it can also happen that the Opponent in the accident for the resulting loss of value must come up. However, some apply to this Conditions. For example, the car is allowed not older be than five years (the day of first registration applies here) and also about no more than 100.000 kilometers Have mileage. If that is the case, the Compensation the difference the value of your car before the accident. This value is taken from a expert set. Sometimes, with an almost new car, the depreciation higher than the actual repair costs fails. In this case too by the other party involved in the accident be balanced.

How much is the damage?

If, however not the opponent in the accidentbut yourself (at least for the most part) bear the blame for the accident, becomes the eventual Loss of value to your Problem. If your contract states that you will return the car to the dealer at the end of the term, have Inform them that you are in an accident were involved. Is it a bad accident, of course also falls depreciation accordingly higher out. This is usually considered by the dealers anyway rated relatively highwhat ultimately makes it a extreme difference between the contractually agreed and that later certain residual value comes. You are to it Committed, the corresponding difference balance. For this reason, it can make sense to put the car in Self-directed sell and hope for a higher price. Of course, this is only possible if the Loan agreement not forbids.

Is it worth the repair or not?

When it comes to write-off comes, most suspect that the residual value is virtually non-existent. However, in most cases the vehicle still has one certain value disposes. If there is a total write-off, that only means that one Repair technically stolen not possible is (technical total loss) or get the repair financially not worth itbecause the Repair costs are higher than the amount you have to spend to purchase an equivalent vehicle minus the residual value (economic total loss). The residual value can still be relative be highprovided the cost of a equivalent Vehicle accordingly low and the Repair costs are correspondingly high. And that's the case faster than you think. Regardless of which case occurs: an accident has an effect In any case on the value of your vehicle. On their Financing but this only has a limited effect. To the extent that the residual value Of your vehicle changedwhat with some Forms of credit definitely plays a role.

How does an accident affect financing?

Depending on which one Form of financing You made up your mind may be an accident either substantial or else save Consequences in relation to your Financing to have. If it's a classic installment loan you just keep paying your monthly rates and any damage to the car is complete irrelevant. In the worst case, you will continue to pay for something that is no longer in your possession. However, the bank takes care of that not. She only has the problem when the letter is as a Safety was deposited (what about this type of financing though selten the case is) that this might be premature published must be to the write-off to be able to sell. After that is the Safety the bank and the leverage against you, for a regular payment of the installments, gone. But of course they still exist for you liabilities from the contract.

Car loan makes things difficult

Things are different if you have one car loan completed. Here you must too the weiterhin the monthly Pay installments. However, such a loan is earmarked and for security reasons is the registration document usually at the bank deposited. If you want to deregister and sell the vehicle due to a total write-off, that's because of the missing vehicle registration document not possible. Because of this, you need the bank maybe an replacement put. This can be a equivalent vehicle of the partner or the one Parent be its registration document is now handed over to the bank until the loan is paid off.

Three-way funding / balloon funding

In case of a Three-way financing or one balloon financing is usually a high one towards the end of the term Final installment become due. If you are unable to pay for them, or simply don't want to pay for them, you either have to get the vehicle merchandise oder aber hand back, taking on an eventual Depreciation has already been advised in the event of an accident. That makes things a lot more difficult for you, as depending on Runtime and Final installment huge Costs can approach you. In this case, the bank may be one of them Resolution of the existing contract and you can switch to an installment loan instead, which makes things cheaper for you. Is the credit already for a great part repaid, then there is the most likely possibility that they received the letter and Balance continue as usual count can.

What do the insurance companies pay?

Most close next to one Liability insurance also one Comprehensive insurance for your vehicle. Usually at least one Partial insurance. This partial comprehensive insurance covers damage caused by theft, fire, game, glass breakage, marten bites or corresponding weather conditions. If you have the Debt in an accident, the insurance will reimburse you for the costs incurred not. This also applies to them Financing Of your vehicle. The Comprehensive insurance also includes self-inflicted Accidents and also Vandalism. If you wantonly or at least grossly negligent cause an accident, the insurance usually covers the damage as well not us or shortens at least the payout considerably. in case of an Total loss the full purchase price is a maximum 12-18 months after purchase refunded. However, not the possible additional costs due to the Financing have arisen. The recommended here Resolution of the contract - you can pay the required sum all at once. Also in the Comprehensive insurance also mostly one excess (Co-payment or deductible) included - i.e. a certain proportion, that you pay for yourself must.

Payment protection insurance

When concluding a loan agreement, residual debt insurance is often taken out directly. They step in when they are unable to stop paying the current installments. This is the case in the event of unemployment, illness or disability. However, it works Payment protection insurance in an accident not!
And finally ... If the car has suffered a total write-off, then you should always have several, ideally independent Obtain offers to determine the residual value.

Are you planning to buy a new car and are you therefore looking for financing? Or should the modified baby and its attachments simply have the best possible insurance? Then ours Credit, financing, leasing, insurance & Co. categories exactly the right place to go to get information. And also cheap financing for Accessory parts is there. Is the new one forged wheel, the planned Airride air suspension or the one you want foiling too expensive? Then a little one might help Financing in the process of implementing the modification on the vehicle. And also the topic Leasing or the vehicle sales are not neglected here. Just click through the posts and get the answer to your questions.

Of course that had not happened yet!

tuningblog has countless posts on the topic Credit, financing, leasing, insurance & Co. in stock. Do you want to see them all? Just click HERE and look around. The following is an excerpt from the last contributions from this category:

Car loan rescheduling - you have to pay attention!

Leasing is popular: everything you need to know!

Financing for auto repairs, spare parts & tuning!

"Tuningblog.eu" - we keep you up to date on the subject of car tuning and car styling with our tuning magazine and we present you the latest tuned vehicles from all over the world every day. It's best to subscribe to ours Feed and will automatically be informed as soon as there is something new about this post, and of course also to all other contributions.