🔺 r/personalfinanceufrosty_22·43 days ago
Totaled my car, upside down 9k with no gap insurance. What are my next steps?
26M. I was involved in an accident yesterday where the other driver was deemed at fault. It was a fairly low impact collision and neither of us were injured. Unfortunately I had $12,000 remaining on my auto loan and I believe the payout will only be around $3,000. Like an idiot I didn’t get gap coverage initially and shopped around last year but no one offered stand alone coverage. I will be contacting the lender tomorrow to see what my repayment options are as I was paying about $450 a month. I am very reluctant to rolling the negative equity into a new loan but I need a car to commute to school which is nearly an hour from me. My parents are urging me to roll it over into a new loan but scared of making another poor decision. What should I do from here? Additional Information - Credit Score mid 600s - Monthly income $1200 - Live with parents (no rent) - Commute from work is about 5 miles and I work early mornings and public transportation isn’t available submitted by /u/frosty_22 to r/personalfinance [link] [comments]