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Totaled Car in Pennsylvania

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Junior Member
About 2 weeks ago I recently purchased a vehicle. After money down I ended up financing about $10,000. Included in that purchase price was an extended warranty. After having the car for a little more than a week I was in an accident and my car was totaled. I looked up the blue book value of my car which says its worth about $10,000. I'm glad that the my insurance check will more than likely cover the cost of the loan however, since I wont be using the extended warranty am I entitled to a refund?

Also because the interest rate was taken into account when calculating the loan, because the bank will now receive a lump sum rather than payments over a 5 year period will the amount of that loan decrease



Senior Member
You should read your extended warranty paperwork and/or talk to the issuer to see if they do have some sort of refund in such situations.

Auto loans are simple interest. The interest is NOT part of the value of the car (either the actual FMV nor what they sold it to you for). You pay each month on the outstanding balance. At 3% for $10,000 over 4 years, you'd have paid an ADDITIONAL $624 over the $10,000 to cover the interest. You won't have to pay that now that the loan has been paid off early.

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