Accident! Leased and Downpayment Question
10-10-06, 09:42 AM
#1
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Accident! Leased and Downpayment Question
Guys,
I just had a terrible accident on my 2-week-old IS350. It might be classified as a total loss. I'm still waiting for the insurance company to figure it out and finish the paperwork.
My question,
I leased the vehicle, and because of my credit history I had to put down $8000 down payment to reduce my monthly payment. I've read in a few places that in situation like this, with a total loss that means I'll lose all the $8000 downpayment that I put? Is that correct?
If that's the case, will it be possible for me to do a buyout on the vehicle, now that the vehicle has already gone into an accident and inoperable to reduce my loss?
Thanks a lot in advance, I'll try to post some pictures once I get them.
Any advice is appreciated.
I just had a terrible accident on my 2-week-old IS350. It might be classified as a total loss. I'm still waiting for the insurance company to figure it out and finish the paperwork.
My question,
I leased the vehicle, and because of my credit history I had to put down $8000 down payment to reduce my monthly payment. I've read in a few places that in situation like this, with a total loss that means I'll lose all the $8000 downpayment that I put? Is that correct?
If that's the case, will it be possible for me to do a buyout on the vehicle, now that the vehicle has already gone into an accident and inoperable to reduce my loss?
Thanks a lot in advance, I'll try to post some pictures once I get them.
Any advice is appreciated.
10-10-06, 10:02 AM
#2
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You put $8000 down on a lease??? 
You're best off calling your insurance agent and leasing company, because they're going to be a lot more helpful than a bunch of strangers on an internet message board.
You're best off calling your insurance agent and leasing company, because they're going to be a lot more helpful than a bunch of strangers on an internet message board.
10-10-06, 10:47 AM
#3
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well...to shed a bit of positive to the situation...you're ok.
but yes, that much down on a lease is going to hurt. do you have any gap insurance?
but ff gives good advice, speak with your agent(s).
good luck.
but yes, that much down on a lease is going to hurt. do you have any gap insurance?
but ff gives good advice, speak with your agent(s).
good luck.
10-10-06, 10:51 AM
#4
Lead Lap
I had a similar situation happen when my car was stolen. The difference was it was not an accident and i was 2 1/2 years into my lease.
This is what the insurance company did to value my car....
They called around to various used car lots to get a value on what my car would sell for and they looked into the Kelly Blue Book value.
At the time my car was stolen my payoff on the car was about $14200. The value that the insurance company placed for my car was almost $19000. The insurance company paid off the lease on my car and I ended up with the difference of almost $5000 in my pocket. I dont believe that you will be able to get back the $8000 you put down on the lease. You may be able to recoup that money if they pay you more for the car than your payoff. Your lease should have GAP insurance built into it so hopefully you will not be responsible for any deficiency balance on the car, meaning that you owe more on the car then the car is worth.
It is ok to post this question here, after all you are just asking a question and requesting guidance. While my situation was not the same as yours, my car was a total loss, I did lease it, but really I didnt recoup my initial downpayment other than the $5000 I made on the car which was the difference between my payoff on the car and the value the insurance company placed on my car. I was able to recoup the downpayment in the $5000 i received but I did not receive my downpayment in addition to the $5000 i received.
I hope this helps, but again, yes you should be working with your insurance adjuster to resolve this.
Just a friendly piece of advice, on leasing you should never put down more than minimum drive off fees, because by putting a large downpayment all you are doing is reducing the cap cost of the car and your monthly payment and in your situation you may be out your downpayment.
I hope this info helps you...
This is what the insurance company did to value my car....
They called around to various used car lots to get a value on what my car would sell for and they looked into the Kelly Blue Book value.
At the time my car was stolen my payoff on the car was about $14200. The value that the insurance company placed for my car was almost $19000. The insurance company paid off the lease on my car and I ended up with the difference of almost $5000 in my pocket. I dont believe that you will be able to get back the $8000 you put down on the lease. You may be able to recoup that money if they pay you more for the car than your payoff. Your lease should have GAP insurance built into it so hopefully you will not be responsible for any deficiency balance on the car, meaning that you owe more on the car then the car is worth.
It is ok to post this question here, after all you are just asking a question and requesting guidance. While my situation was not the same as yours, my car was a total loss, I did lease it, but really I didnt recoup my initial downpayment other than the $5000 I made on the car which was the difference between my payoff on the car and the value the insurance company placed on my car. I was able to recoup the downpayment in the $5000 i received but I did not receive my downpayment in addition to the $5000 i received.
I hope this helps, but again, yes you should be working with your insurance adjuster to resolve this.
Just a friendly piece of advice, on leasing you should never put down more than minimum drive off fees, because by putting a large downpayment all you are doing is reducing the cap cost of the car and your monthly payment and in your situation you may be out your downpayment.
I hope this info helps you...
10-10-06, 12:08 PM
#5
WOW THAT SUCKS.
Well here is your most likely answer
The insurance company will give you a check for $***** and that will be used to payoff your balance to Lexus Financial. Since you havent made a payment, you owe them
1)Cost of car
2)Taxes and Fees
3)Minus your downpayment.
If its over your balance owed, you will get that money.
If its under your balance owed, then Lexus will cover the difference, because Leases automatically have gap insurance.
The bad news for you, is that you are probably out at least 3-4K+ the taxes and tags on that IS350.
Buying the car from Lexus wont help you at all.
Your best bet is to spend some time with the car and pull out the navigation, headlights... whatever you can.... if you can.
Well here is your most likely answer
The insurance company will give you a check for $***** and that will be used to payoff your balance to Lexus Financial. Since you havent made a payment, you owe them
1)Cost of car
2)Taxes and Fees
3)Minus your downpayment.
If its over your balance owed, you will get that money.
If its under your balance owed, then Lexus will cover the difference, because Leases automatically have gap insurance.
The bad news for you, is that you are probably out at least 3-4K+ the taxes and tags on that IS350.
Buying the car from Lexus wont help you at all.
Your best bet is to spend some time with the car and pull out the navigation, headlights... whatever you can.... if you can.
10-10-06, 12:25 PM
#7
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With such a large down payment, Gap Coverage probably won't have to kick in and means that you can kiss your 8k down goodbye. In 2.5 months, it probably depreciated 5k, so you'll get a check for 3k back. Taxes and fees were hopefully rolled into the lease payment meaning monthy and not out of pocket up front.
I heard of someone putting 14k down on an NSX and totaled it not long after leasing. Of course the NSX depreciated 20k when he drove it off the lot so his down payment went bye-bye and his GAP insurance picked up the rest.
I heard of someone putting 14k down on an NSX and totaled it not long after leasing. Of course the NSX depreciated 20k when he drove it off the lot so his down payment went bye-bye and his GAP insurance picked up the rest.
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10-10-06, 03:01 PM
#10
wow, 8k........
anyway talk to your agent, depending on your insurance company some will pay high book, some will pay low book and some will try to screw you completely, If you insurance company pays high book then you get the car paid off and what ever is left over is coverd by your gap insurance ( in therory) But like sailing said since you put a massive down payment down gap insurance will not really be needed since your down payment payed for the depreciation up front basically. good luck man. tqlla3k said it the best.....
anyway talk to your agent, depending on your insurance company some will pay high book, some will pay low book and some will try to screw you completely, If you insurance company pays high book then you get the car paid off and what ever is left over is coverd by your gap insurance ( in therory) But like sailing said since you put a massive down payment down gap insurance will not really be needed since your down payment payed for the depreciation up front basically. good luck man. tqlla3k said it the best.....
10-10-06, 04:20 PM
#11
Lexus Test Driver
WOW THAT SUCKS.
Well here is your most likely answer
The insurance company will give you a check for $***** and that will be used to payoff your balance to Lexus Financial. Since you havent made a payment, you owe them
1)Cost of car
2)Taxes and Fees
3)Minus your downpayment.
Well here is your most likely answer
The insurance company will give you a check for $***** and that will be used to payoff your balance to Lexus Financial. Since you havent made a payment, you owe them
1)Cost of car
2)Taxes and Fees
3)Minus your downpayment.
10-10-06, 05:16 PM
#13
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I have no advice since I have never had to deal with this but I would really like to see how you caused over $30k worth of damage on a brand new car.
Sorry for your loss of the car though, glad your somewhat ok since your typing.
Sorry for your loss of the car though, glad your somewhat ok since your typing.
10-10-06, 05:22 PM
#14
Lexus Test Driver
That's how I understand it. No difference between insurance companies' treatment of a lease total loss from an owned total loss. They would determine the fair market value of the vehicle as such was immediately before the accident and then issue a two-party check (you and the lease company).
10-10-06, 05:41 PM
#15
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I had this happen, car will be paid off in full and you might get a 1000 or 2000 out of it only cause the Insurance sometime add some to the value of the car, the 8000 is gone, wrecking the car shortly after leasing it is the exact reason why you don't put that much down cause you lose it, same reason why you don't pay tax up front.