Asked in Car Accidents for Tennessee

Q: If buying a financed car that is a total lose. Am I responsible for finance charges rendered up purchase.

I were ten months from purchasing the vehicle....

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1 Lawyer Answer
Mr. James Charles Wright
Mr. James Charles Wright
  • Personal Injury Lawyer
  • Knoxville, TN
  • Licensed in Tennessee

A: If I am understanding you correctly, your car was totaled in an accident. Your car was financed and you are wondering if after the accident you continue to be responsible for the payments for the vehicle.

You would still be responsible under your contract for purchase. Whoever is responsible for the accident (if there was a third party that was at fault) would be liable to you for the difference in the value of your vehicle before and after the accident. Sometimes this isn't enough to cover an amount owed on a vehicle. For instance if you owed 10,000 on a car and its value before the accident was 9,000. then you would entitled to the 9,000. This leaves you short on the debt to the lender.

Paul E. Tennison agrees with this answer

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