Question: I wrecked my truck and the insurance company totaled it. Should I wait until my old loan is paid off by the insurance company before applying for a new loan on a new vehicle?

December 17, 2005

Hello Tony

I purchased a 2005 Silverado in June of this year, however it was totaled in November of this year (thank goodness I purchased GAP Insurance).

Anyway the process of paying off GMAC from my insurance company and the GAP people I do not believe has been completed since the insurance company just decided to total my truck on December 13th.

Should I wait until this process has been totaled completed (probably about another week) or should I go ahead and get a replacement vehicle now?

Of course, the salesman told me not to worry because GMAC has already been contacted and they know the vehicle was totaled and I had GAP insurance, which is true because I called GMAC just to make sure. I just don't want any problems when financing come around. Any suggestions?

Laura

Answer:

Hi Laura,

Listen, the salesman is not looking out for your best interests. He's looking to make a commission as soon as he possibly can. The car dealer will try to rush you into a new vehicle simply because it's in their best interest . . . not yours.

As long as you have something to drive I would suggest that you wait until the old loan is paid off by the insurance companies. Then you can go buy whatever kind of vehicle you want without having to worry about any complications.

All my very best...

Tony Iorio