need creative financing

My friend totaled his car and insurance is paying him $8000, but he owes $10000 on the car loan !
Do you think that he could buy a used car for around $8000 and have the
dealer make the loan for $10000 so that
the remaining balance on his old car loan can be buried/hidden in his hopefully new car loan. This idea is just a thought
I had because my friend is really strapped for cash right now and needs a car ASAP. I'm not even sure if this would work
or is too far fetched an idea, but I know that sometimes stuff like this happens with house mortgages where loans are written for more than the house is
worth.
Thanks for opinions.
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insurance fraud is a FELONY old john
Hello, don! You wrote on Fri, 13 Jun 2008 01:14:43 -0500:
d> Do you think that he could buy a used car for around $8000 and have the d> dealer make the loan for $10000 so that
d> the remaining balance on his old car loan can be buried/hidden in his d> hopefully new car loan. This idea is just a thought
d> I had because my friend is really strapped for cash right now and needs d> a car ASAP. I'm not even sure if this would work
d> or is too far fetched an idea, but I know that sometimes stuff like this d> happens with house mortgages where loans are written for more than the d> house is
d> worth.
With best regards, snipped-for-privacy@comcast.net. E-mail: snipped-for-privacy@comcast.net
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snipped-for-privacy@comcast.net wrote:

How is there any insurance fraud in this story?
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This is routinely done with car sales. Most people tend to be "Upside Down" with their loan-to-car value ratio. I assume your "friend" plans to trade in the old car. Assuming this, and that your "Friend" is otherwise credit worthy, it can and will be done.
John

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don turned on the Etch-A-Sketch and wrote:

Next time, have your friend purchase gap insurance.
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