Lease and rear-end collision
09-04-18, 04:49 PM
#1
Pit Crew
Thread Starter
Lease and rear-end collision
Recently young girl rear ended me during heavy traffic, the damage inst significant, but since this is a lease should I notify my dealer or should I do the repairs using my mechanic? Anyone had some experience with situation similar to this one?
09-04-18, 05:02 PM
#2
Lexus Champion
Sorry about the accident. Having never driven any leased vehicle myself but IMO, it is best to notify the dealer and have it repaired properly if you plan to return the vehicle at the end of lease term. In over 60 years driving I had only accident which was caused by a young girl running red light. If she hit driver side of my car I wouldn't be here today. Now over here we have progressive license system for young first time drivers.
09-04-18, 07:24 PM
#3
No need to notify the dealer. Notify your insurance and get it fixed.
09-04-18, 07:43 PM
#4
Lexus Champion
I can't speak to Lexus.
but I was rear ended in a Leased GM several years back, When I turned the Lease in and opted to purchase a new GM vehicle (not re-lease another or purchase my ended lease) I was assessed a "excessive wear" penalty because the accident showed on the Carfax. I was basically told that lease returns that had been in a accident went straight to auction because they couldn't sell it on their lot.
I was told the same thing when we traded in our owned 2007 Camry for a 2017 Camry last year, that because the 2007 had been rear ended and it showed on the Carfax that the dealer would send it straight to auction as they don't put vehicles that are in accidents on their used lot.
A co-worker expressed the same thing to me about his BMW, it was a lease and he had the windshield replaced after a large rock hit it, when he returned it he was assessed an "excess wear" penalty due to the windshield replacement.
I'm guess that this is standard practice amongst the leasing companies, so whether you report it or not, it will pop up on Carfax if there is an insurance claim and you are likely to be assessed a penalty for the excessive wear if you turn in the lease and not purchase it at the end of your term.
I would highly recommend checking into the diminished value laws in your state and force the other drivers insurance to pay for the diminished value on your lease, then bank that money for the "excess wear" penalty.
but I was rear ended in a Leased GM several years back, When I turned the Lease in and opted to purchase a new GM vehicle (not re-lease another or purchase my ended lease) I was assessed a "excessive wear" penalty because the accident showed on the Carfax. I was basically told that lease returns that had been in a accident went straight to auction because they couldn't sell it on their lot.
I was told the same thing when we traded in our owned 2007 Camry for a 2017 Camry last year, that because the 2007 had been rear ended and it showed on the Carfax that the dealer would send it straight to auction as they don't put vehicles that are in accidents on their used lot.
A co-worker expressed the same thing to me about his BMW, it was a lease and he had the windshield replaced after a large rock hit it, when he returned it he was assessed an "excess wear" penalty due to the windshield replacement.
I'm guess that this is standard practice amongst the leasing companies, so whether you report it or not, it will pop up on Carfax if there is an insurance claim and you are likely to be assessed a penalty for the excessive wear if you turn in the lease and not purchase it at the end of your term.
I would highly recommend checking into the diminished value laws in your state and force the other drivers insurance to pay for the diminished value on your lease, then bank that money for the "excess wear" penalty.
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milk659 (09-09-18)
09-04-18, 08:22 PM
#5
I can't speak to Lexus.
but I was rear ended in a Leased GM several years back, When I turned the Lease in and opted to purchase a new GM vehicle (not re-lease another or purchase my ended lease) I was assessed a "excessive wear" penalty because the accident showed on the Carfax. I was basically told that lease returns that had been in a accident went straight to auction because they couldn't sell it on their lot.
I was told the same thing when we traded in our owned 2007 Camry for a 2017 Camry last year, that because the 2007 had been rear ended and it showed on the Carfax that the dealer would send it straight to auction as they don't put vehicles that are in accidents on their used lot.
A co-worker expressed the same thing to me about his BMW, it was a lease and he had the windshield replaced after a large rock hit it, when he returned it he was assessed an "excess wear" penalty due to the windshield replacement.
I'm guess that this is standard practice amongst the leasing companies, so whether you report it or not, it will pop up on Carfax if there is an insurance claim and you are likely to be assessed a penalty for the excessive wear if you turn in the lease and not purchase it at the end of your term.
I would highly recommend checking into the diminished value laws in your state and force the other drivers insurance to pay for the diminished value on your lease, then bank that money for the "excess wear" penalty.
but I was rear ended in a Leased GM several years back, When I turned the Lease in and opted to purchase a new GM vehicle (not re-lease another or purchase my ended lease) I was assessed a "excessive wear" penalty because the accident showed on the Carfax. I was basically told that lease returns that had been in a accident went straight to auction because they couldn't sell it on their lot.
I was told the same thing when we traded in our owned 2007 Camry for a 2017 Camry last year, that because the 2007 had been rear ended and it showed on the Carfax that the dealer would send it straight to auction as they don't put vehicles that are in accidents on their used lot.
A co-worker expressed the same thing to me about his BMW, it was a lease and he had the windshield replaced after a large rock hit it, when he returned it he was assessed an "excess wear" penalty due to the windshield replacement.
I'm guess that this is standard practice amongst the leasing companies, so whether you report it or not, it will pop up on Carfax if there is an insurance claim and you are likely to be assessed a penalty for the excessive wear if you turn in the lease and not purchase it at the end of your term.
I would highly recommend checking into the diminished value laws in your state and force the other drivers insurance to pay for the diminished value on your lease, then bank that money for the "excess wear" penalty.
Last edited by Oldfart; 09-04-18 at 08:35 PM.
09-04-18, 08:37 PM
#7
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09-04-18, 09:31 PM
#8
Lexus Champion
09-04-18, 10:25 PM
#9
Let's make it clear. If leased car was in an accident and properly repaired before returning, person who leased the car doesn't owe anything else for excessive wear and tear. Excessive wear and tear are things that have not been repaired prior to returning leased car.
Edit: Returning lease early or trading car for another brand doesn't mean lease returned at the end of term and will require appraisal
Last edited by Oldfart; 09-04-18 at 10:44 PM.
09-05-18, 09:29 AM
#10
Lexus Champion
not making anything up, call your leasing company and ask, if an accident shows on a Carfax at the return of a leased vehicle they can ding you:
https://www.anidjarlevine.com/faqs/i...-car-now-what/
https://www.all-about-car-accidents....cars-accidents
https://www.theglobeandmail.com/glob...ticle30676626/
Perhaps different lease companies call it something different and or handle it different, GMAC categorized it under "excess wear" on the return paperwork, and the dealership told me it was specifically because of the accident, there was nothing else wrong with the vehicle, however I didn't notify GMAC of the accident and I had it repaired by my insurance company at their authorized repair center, not a GM dealership, which may be why they dinged me, I don't remember it was 17 years ago, maybe it was just the dealership making an excuse to keep my security deposit and they had some ammo to use to do so.
as for my co-worker, his windshield was replaced by Safelite Mobile and he also didn't tell BMW Financial. He didn't know Safelite reported to Carfax either, which they do.
regardless, the FACT is that the leasing company can penalize you for the accident if your contract indicates such and you don't follow their rules. you don't own the car the leasing company does, so it is your responsibility to follow their requirements for the repair.
https://www.anidjarlevine.com/faqs/i...-car-now-what/
Never get any repairs done on your vehicle before you talk to the leasing company or the dealership where you took out the lease. Here are a few reasons why:
- Many car leases do not allow aftermarket parts to be put in a vehicle, even in a repair situation.
- Another possibility is that the lease requires that repairs be completed at a service location that is certified by the manufacturer (for instance, at a Ford dealership if the car is a Ford).
https://www.all-about-car-accidents....cars-accidents
Documenting the Damage
When your leased vehicle is involved in a car accident, the terms of the lease agreement will determine what you are required to do, and will spell out your obligations to the leasing company. The leasing company will likely require that you document any damage to the car. That means you’ll probably need to get the vehicle inspected at an automotive service center designated by the leasing company, to ensure that the full extent of the damage is assessed. The service center (possibly with the assistance of an inspector retained by the leaseholder) will also provide an estimate of what it will cost to repair the vehicle. This documentation of damage to the vehicle and the resulting repair estimate will also be important to the filing of any insurance claim stemming from the accident.
When your leased vehicle is involved in a car accident, the terms of the lease agreement will determine what you are required to do, and will spell out your obligations to the leasing company. The leasing company will likely require that you document any damage to the car. That means you’ll probably need to get the vehicle inspected at an automotive service center designated by the leasing company, to ensure that the full extent of the damage is assessed. The service center (possibly with the assistance of an inspector retained by the leaseholder) will also provide an estimate of what it will cost to repair the vehicle. This documentation of damage to the vehicle and the resulting repair estimate will also be important to the filing of any insurance claim stemming from the accident.
https://www.theglobeandmail.com/glob...ticle30676626/
"If the lessor [the leasing company] determines the repair was not performed to an acceptable standard, they could assess a penalty equivalent to the value of reconditioning the vehicle to their standard," Iny said. "Even thought they rarely undertake the actual reconditioning."
Perhaps different lease companies call it something different and or handle it different, GMAC categorized it under "excess wear" on the return paperwork, and the dealership told me it was specifically because of the accident, there was nothing else wrong with the vehicle, however I didn't notify GMAC of the accident and I had it repaired by my insurance company at their authorized repair center, not a GM dealership, which may be why they dinged me, I don't remember it was 17 years ago, maybe it was just the dealership making an excuse to keep my security deposit and they had some ammo to use to do so.
as for my co-worker, his windshield was replaced by Safelite Mobile and he also didn't tell BMW Financial. He didn't know Safelite reported to Carfax either, which they do.
regardless, the FACT is that the leasing company can penalize you for the accident if your contract indicates such and you don't follow their rules. you don't own the car the leasing company does, so it is your responsibility to follow their requirements for the repair.
Last edited by kitlz; 09-05-18 at 10:18 AM. Reason: inflammatory remark
09-05-18, 11:26 AM
#11
not making anything up, call your leasing company and ask, if an accident shows on a Carfax at the return of a leased vehicle they can ding you:
https://www.anidjarlevine.com/faqs/i...-car-now-what/
https://www.anidjarlevine.com/faqs/i...-car-now-what/
Link to attorney website proves exactly what?
Let's go back a few post. Wear and tear is exactly that - wear and tear. One can choose to get them fixed prior to returning or ignore and pay upon return.
For accidents I am required to have insurance policy with minimum limits specified by Lessor. This ends my liability for any accidents. There is an exception in the event when the car is declared total loss and when you sign your lease agreement finance office makes sure to make you aware of this and sign a form.
09-05-18, 11:44 AM
#12
Lexus Test Driver
Man I'm glad I don't lease
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Rarebird (09-06-18)
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ravenuer (09-06-18)
09-06-18, 09:57 AM
#15
I’m silently laughing I sold my ‘08 Camry privately last year before I bought current RX, but based on these rediculous claims about accidents, my Camry should have been taken out back and shot 
I sold my ‘08 Camry privately last year before I bought current RX, but based on these rediculous claims about accidents, my Camry should have been taken out back and shot 
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