What Happens if your Car is Written off and its on Finance
One of the greatest challenges facing residents is the harsh reality when a car is written off.
19:28 03 February 2020
Your car gets involved in an accident and after assessing it, it is written off by your insurance company. The question then becomes, what happens now that your car is written off and, unfortunately, it's on car finance? Let's delve into what steps you can take and the options you have.
What Happens Next?
Your insurance company considers your car a write off if the cost of repairs, after an accident, is more than its actual worth. For instance, if the car is worth £4,000 and it will cost £6,000 to repair, it will be written off. In such a situation, it's best if you hire the services of an accident lawyer to give you legal representation and advice concerning the issue. Through your lawyer, you will be able to negotiate for a good settlement to help you take the next steps. Remember, just because your car gets written off doesn't mean that you stop paying for the car finance. So, a good settlement should help you cater for that with ease. For example, let's say you bought your car on finance for £7,000 and you have already paid £2,000. After the accident, your insurance company pays you £4,000. If you choose to forward the all amount to your car finance payment plan, it means that you still have a balance of £1,000.
Paying the remaining £1,000 is not easy, especially now that you are paying for a written off car. If you fail to pay, you might end up with a bad credit record. Consequently, this will negatively affect your borrowing capacity in the future. Nowloan can help you compare the market to find a lender with great interest rates. Another option you can take is to consult your finance company and find out if you can use the insurance settlement money to buy another car and keep on paying off the finance as you previously did. Talk to your finance company for detailed advice regarding the matter.
What Else Can You Do?
If your car gets written off and it’s on finance, you don't need to get overly worried because at NowLoan, you will get connected to potential lenders quicker and easier. If you will want to clear your car finance balance and you don't have money at the moment, you can apply for a short term UK loan through NowLoan and get connected to a lender who will, satisfactorily, meet your finance needs. This is a convenient and easy way of applying for a short-term UK loan because it increases your likelihood of being approved for a loan. Going straight to individual lenders can be a challenge; hence, using this platform increases your chances of getting a short-term loan. Finding a loan within a short time is not easy. So, ride on NowLoan's reputation and get a quick short-term UK loan to pay off your car finance with ease.