Help on new car lease/ loan


I’m kind of in a bad spot and I’m wondering how to fix it. My wife was just hit by a ITD snowplow, which ended up totaling her car. I have GAP and new car replacement, so I’m ok there. I’ll be seeing a check for around $3,600 from my insurance company to put towards a new car. I should also be getting a good tax return back, since my daughter wasn’t on the two stimulus checks that we got last year. We are currently sharing my 2020 Silverado Trailboss. Payoff is around $54,000, trade in is around $42,000. Its a 4.09% loan with 76 payments left. My wife is thinking about getting a GMC terrain, which has a 0% for 72 months. Would it be worth it to trade the truck in and buy myself a cheap beater to have one smaller payment, or refinance the truck at the same time while buying the terrain? I’m wanting to get a 1 ton in the future for work purposes, so I do not plan on keeping the Silverado for a very long time.

Not sure how that will be possible.

That’s 12k in negative equity.

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Id have around 10k to get rid of the majority of negative equity.

Do you plan to pay that off or roll it into a new car? (Not advisable)

I am sure others will chime in, but your best bet might be to keep the truck and look into refinancing the loan to a shorter term like 60 months. What are your payments right now?

Either pay it off or put it towards the new car. Possibly split it between the two. Payments are $809 ish a month. I’d have to look to be honest. Im kind of thinking about refinancing the truck when getting the car. Both would be through Gm Financial. The terrain is $9500 off msrp. But id rather keep both if I could. Ive got wiggle room, but id be wanting to decrease my payment while still paying the same to pay it off quicker. The 12k in negative equity was from a previous truck that I shouldn’t have traded in.

That’s still way more than the terrain is worth. It’s a miserable vehicle.

If you’re trying to save money, a new terrain isn’t a good choice.
If you’re trying to get into a decent, inexpensive vehicle, a new terrain isn’t a good choice.
If you’re trying to get your wife to divorce you, a new terrain is a fantastic choice.


The moment I saw that you are underwater on the Trailboss I thought take that sweet $3600 check and get your WIFE the Beater SUV.

Don’t put your self so deep in the hole that you are declaring bankruptcy in 4 years over the fact that you are trying to dig a $12000 Hole and hold it up with a $3600 check.


I saw a similar issue come up on another site. $3,600 seems like an awful low amount to make someone whole, especially in this car market. What was the vehicle that was totaled? And how much would it cost to replace that vehicle with the same vehicle in terms of make, model, trim, mileage, etc. If you are able to show higher prices to replace the car then you may be able to force the insurance company to A) Give you more money or B) replace the car themselves since you have vehicle “replacement” insurance. You pay for insurance to make you whole. Don’t settle for them making you half. You mentioned ITD, is that a government agency? I’m sure that they have excellent insurance and they can go back and forth with your insurance company on how to make you WHOLE, not cutting you a check that won’t replace your car.

You mentioned ITD, is that a government agency? I’m sure that they have excellent insurance and they can go back and forth with your insurance company on how to make you WHOLE, not cutting you a check that won’t replace your car.

Likely local state DOT or similar agency. Many of them on the state level are self insured…

It would appear that the car was financed, so who really knows how fair that payout is not knowing what the value and loan balance are.


OP states that he has some kind of REPLACEMENT coverage, which should mean that they either pay enough to replace the car with a comparable vehicle, or they acquire that vehicle themselves to settle the claim. I’m not sure what you are getting for $3,600 anywhere though. Seems like they are possibly lowballing them to go away.

Since he mentioned GAP I read that as $3,600 going to him in excess of payoff.

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Given that that OP referenced GAP, it sounds like the car was underwater. So without knowing any specifics of the vehicle or it’s true market value, or what constitutes an equivalent ‘new car’, $3,600 could be more than generous. Not sure what factors lead you to assume it’s a lowball. Going from being underwater on the loan to having a $3,600 bonanza doesn’t give me that impression.

Also note that many ‘new car replacement’ programs cap how much ‘newer’ of a car you get upgraded to. Some give you only up to 1 model year newer. So if you have a 2018, you’ll get the value of a 2019, not a 2021.

How long was this original note?

Hypothetical numbers here, let’s say the car was valued at $18k, loan/lease payoff at $20k and an equivalent new car of $23.6k. GAP covers the $2k negative equity and new car payoff compensates the remaining $3600 delta.

At least that’s how I read it from the information provided.

Basically it’s their state DOT as mentioned.

Also, I don’t know how it is in Idaho, but in NJ, state and government entities have immunity against liability for vehicle damage. I found out the hard way. So you may not be able to collect anything and are forced to use your own insurance.

OP didn’t mention the nature of the accident though. I doubt they are immune if they were just driving around and were involved in an at fault accident. If they were plowing and caused some damage that’s probably a different story.

It’s an insurance company, that’s what they tend to do.

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I’m not anywhere close to declaring bankruptcy. I bought her car used, which was a 2014 Forester XT touring. I had a $300 a month payment on it already. The wife is used to having all of the new features that her previous car had. I dont need her to back the new car into the wall because she couldn’t tell. She hates the truck because of how big it is.

Have you seen a new terrain? The old ones were miserable. These new ones are far superior.

USAA is my insurance, they actually paid out about 23k on a 21k loan, but the $3600 goes to me instead of the loan company. Same make and model and trim is about 15-17k for a Forester Xt touring. Which is what they paid plus a bunch of other stuff. ITD is the transportation department. They plowed right through the hood of the car while she was stopped at a stop light.

84 with the no payments for 3 months, so technically 87.