Expert: Bennie719 - 5/21/2009

Question
My ford ranger was totalout.I Have 9800 to pay on it.
My ins will pay 7400 of it.How do I pay the 2400 that is left.

Answer
Hi Ron,
It sounds like you were "upside down" on your loan.  Several factors can cause this, such as you owing more money on your trade-in than
it was worth and the dealer rolled that amount into your new loan,
or you simply made a bad deal and over paid for the vehicle or your
insurance company paid you a lower amount due to high mileage and
condition.

It doesn't matter what factor put you "upside down", unless you purchased gap insurance to cover such a situation, you still owe
$2400 to your lender.

You will have to discuss this situation with your lender.  They may require that you continue making the same monthly payments until the balance is paid off or they may be willing to work out a plan that
will give you a longer period with smaller payments.

I hope that you find this information to be helpful.  Your feedback by rating my response will be appreciated.

Sincerely,
Bennie
San Francisco Bay Area