What happens if your financed car is written off

Powered by MotoNovo Finance, we have over 40 years of industry experience in helping people find their dream wheels and negotiate any financial trouble they may have along the way. View more articles. We'll use your criteria to show you personalised quotations to suit your needs.

We'd like to send you some occasional news, reviews and offers. We also have some trusted partners who'd like to do the same. Please choose from below, what you are comfortable with. What happens if a car is written off under finance? Home Articles What happens if a car is written off under finance?

Latest car guides. June 24th info. Find my car. Not all crashes end in a write-off. Guaranteed Asset Protection GAP insurance makes up the shortfall between the amount you paid for your car or owe on finance and the settlement figure offered by your insurer if your car is written off. If not, it might be worth arranging extra cover with your insurance company. If you want to know how much car finance you can afford, our handy car finance calculator will give you a quick estimate and breakdown of costs.

What happens if your car is deemed a write-off? How do we determine whether your vehicle is a write-off? Primarily: The year, make, model, and odometer reading. The type of engine, options, and overall condition, noting unrelated damage and aftermarket equipment added to the vehicle; careful consideration determines if these additions really add value to the vehicle. Independent market survey reports, indicating sales of similar vehicles of the same year, make and model.

While neither situation is ideal and could leave you short in the pocket, there are actions you can take. If you feel the settlement figure from your insurance company is too low, you should be prepared to negotiate a higher price.

If, however, the settlement figure is fair but lower than your outstanding loan balance as a result of high-interest rates, you should discuss this with your lender and see whether you can come to an arrangement. Remember, you remain liable for any deficiencies in the car if you sell it so it must be repaired to a standard that complies with MOT regulations.

So long as repairs are carried out by a qualified and skilled engineer, then purchasing a write off could be a shrewd move. You may not be keen for your car to be written off, particularly if it is of sentimental value or you feel you would be out of pocket as a result.

In This Guide: What is a write-off? Write off categories Written off and purchased on finance?