Borrowing a loan to buy a new or used car is a normal and common thing, because a lot of people choose not to save money for several years or to buy an older and model car, but to borrow a loan to buy a car they have always wanted. However, no one in their plans ever foresees anything with this machine.
Car is an object that is easily damaged
Whether it is an accident or an accident, the car is an object that is easily damaged so many people also wonder what to do if something happened to the car you bought with the credit before you have paid off this credit. The situation when a car is damaged or something else happens before it is possible to repay the loan taken for its purchase is not pleasant and many do not know what to do right away.
The first thing you can do in such a situation is to simply pay off the remaining amount of the loan that is left as it is also the best and fairest action against the creditor and against you. You can, of course, protest that if the accident was not your fault, you would not have to repay the loan, but here you have to say right away that you chose to borrow a loan to buy a car.
Such action is risky in itself
Because you cannot predict what will happen in the future, and the car is an object that is relatively easy to damage, so you should also be responsible for your actions. However, if you do not have the money to pay the loan right away and forget about it, in such a case you should probably think about a new loan, which would allow you to pay for the existing loan and maybe you have enough money to pay the first installment.
For car purchase. However, if you are not satisfied with this option, be sure to contact your lender. He may have some advice for you to do in such a situation. Often creditors in such situations allow the remaining loan amount to be converted into a new loan, either to buy a new car or simply to have a much more favorable interest rate on that loan, as you no longer own the car you pay for. Of course, if the remaining amount of the loan is very large, perhaps even a new loan will not help much, the only way you would be able to buy a used car with which you could continue to move.
Another option is to simply place the damaged car in a safe place
And continue to pay the credit as you would if you continued to drive the same car. But when the credit is finally repaid and the car comes into full ownership, you can, for example, scrap it, resulting in you recovering at least a small amount of the paid loan, and maybe you can even use that amount to buy a new car further.
Only in this case, be careful and really make sure you have a safe place to hold the car and where it will not be further damaged, so that you don’t pay off, but the car even has no value for scrap metal.
And the last option I can offer you in such a situation is to contact a lawyer specializing in bankruptcy matters, because it is possible that with the help of a lawyer you will be able to win that the creditor recognizes you as bankrupt and cancels you further credit, but contrary to the creditor to return the damaged car. If, however, the creditor does not subscribe to such a solution,