Comments on: Selling a Car While Upside-Down http://www.consumerismcommentary.com/selling-a-car-while-upside-down/ A premier personal finance blog, established 2003. Within, Flexo discusses his own experiences with money, and he and other authors comment on a wide range of personal finance topics. Sun, 27 May 2012 14:19:12 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Special Ed http://www.consumerismcommentary.com/selling-a-car-while-upside-down/comment-page-1/#comment-59507 Special Ed Tue, 05 Sep 2006 09:32:38 +0000 http://www.consumerismcommentary.com/2006/06/27/selling-a-car-while-upside-down/#comment-59507 >Consider “GAP� insurance. While that stands for “Guaranteed Auto Protection,� it’s designed to help fill the “gap� in value if you must sell while upside-down. GAP insurance will not help you when selling an "upside-down" vehicle. This insurance is to cover the entire cost of an upside-down vehicle that has been totalled in a wreck. Example: You owe $23,000 on a car that is worth $20,000 and you have full coverage in case of accidents. If you total your car, the insurance will pay you what the car is worth ($20,000), not what you owe($23,000). The gap insurance is designed to pay that $3000 gap in your full coverage. >Consider “GAP� insurance. While that stands for “Guaranteed Auto Protection,� it’s designed to help fill the “gap� in value if you must sell while upside-down.

GAP insurance will not help you when selling an “upside-down” vehicle. This insurance is to cover the entire cost of an upside-down vehicle that has been totalled in a wreck.

Example:
You owe $23,000 on a car that is worth $20,000 and you have full coverage in case of accidents. If you total your car, the insurance will pay you what the car is worth ($20,000), not what you owe($23,000). The gap insurance is designed to pay that $3000 gap in your full coverage.

]]> By: Foobarista http://www.consumerismcommentary.com/selling-a-car-while-upside-down/comment-page-1/#comment-32771 Foobarista Fri, 30 Jun 2006 21:34:58 +0000 http://www.consumerismcommentary.com/2006/06/27/selling-a-car-while-upside-down/#comment-32771 Not to be a pedant, but you _do_ legally own the car in the legal sense that ownership means you have exclusive use of the property, etc. The dealership can't decide to let the dealer's kid take your car out for the weekend or whatever. If you use a loan to buy a car (or house, etc), it has a lien on it for the amount of the balance due on the note, and your ownership rights are bound by any other terms in the note. Unless you buy your car through an explicit "rent to own" arrangement, you own the car as soon as you sign the purchase agreement. The reason I don't like muddying "ownership" discussions in this way is because some people have been known to exploit this type of "non-ownership" argument to extort terms out of people that they wouldn't get otherwise. You don't see this as much with cars but you do see it with people trying to buy houses from people in over their head. Not to be a pedant, but you _do_ legally own the car in the legal sense that ownership means you have exclusive use of the property, etc. The dealership can’t decide to let the dealer’s kid take your car out for the weekend or whatever.

If you use a loan to buy a car (or house, etc), it has a lien on it for the amount of the balance due on the note, and your ownership rights are bound by any other terms in the note. Unless you buy your car through an explicit “rent to own” arrangement, you own the car as soon as you sign the purchase agreement.

The reason I don’t like muddying “ownership” discussions in this way is because some people have been known to exploit this type of “non-ownership” argument to extort terms out of people that they wouldn’t get otherwise. You don’t see this as much with cars but you do see it with people trying to buy houses from people in over their head.

]]> By: John Koontz http://www.consumerismcommentary.com/selling-a-car-while-upside-down/comment-page-1/#comment-31254 John Koontz Tue, 27 Jun 2006 22:42:31 +0000 http://www.consumerismcommentary.com/2006/06/27/selling-a-car-while-upside-down/#comment-31254 NADA may be better for dealers, but most private sales still look at Kelley. I just sold a car for a mere $300 less than Kelley Blue Book excellent condition. NADA may be better for dealers, but most private sales still look at Kelley. I just sold a car for a mere $300 less than Kelley Blue Book excellent condition.

]]> By: mapgirl http://www.consumerismcommentary.com/selling-a-car-while-upside-down/comment-page-1/#comment-31212 mapgirl Tue, 27 Jun 2006 17:09:52 +0000 http://www.consumerismcommentary.com/2006/06/27/selling-a-car-while-upside-down/#comment-31212 Not to hijack your post, but the NADA Guides offer a better price for sellers than Kelley Blue Book. I'm not sure how it compares to Edmunds, but a dealer will usually honor the NADA price since, NADA are the dealers. Not to hijack your post, but the NADA Guides offer a better price for sellers than Kelley Blue Book. I’m not sure how it compares to Edmunds, but a dealer will usually honor the NADA price since, NADA are the dealers.

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