Crashed lease car, Help!

[Slalon]

Hello all, not sure wether this is in the write forum but I can’t seem to post in all forums. Here goes..

I purchased a lease vehicle in Feb ‘18 on a 36 month lease with no deposit @ £350 a month. I’ve made 7 payments which is about £2500.

Now the full value of the car when purchased in Feb was £28000, I have no GAP insurance and am unsure wether it will be a write off due to it just happening, but my main concern is the the front crossmember is bent inwards pretty bad. The total cost of my lease is £12,600 so I’ve about £10,000 to pay on the lease.

Please could someone advise further about the potential shortfall and exactly how the payments will be made? The accident was my fault I went into the back of someone, there car doesn’t look that bad, I tried to avoid going straight into the back and got the corner.

Thanks in advance

[Alucidnation]

What did your insurance company say when you spoke to them?

[soupdragon1]

Slalon said:

Hello all, not sure wether this is in the write forum but I can’t seem to post in all forums. Here goes..

I purchased a lease vehicle in Feb ‘18 on a 36 month lease with no deposit @ £350 a month. I’ve made 7 payments which is about £2500.

Now the full value of the car when purchased in Feb was £28000, I have no GAP insurance and am unsure wether it will be a write off due to it just happening, but my main concern is the the front crossmember is bent inwards pretty bad. The total cost of my lease is £12,600 so I’ve about £10,000 to pay on the lease.

Please could someone advise further about the potential shortfall and exactly how the payments will be made? The accident was my fault I went into the back of someone, there car doesn’t look that bad, I tried to avoid going straight into the back and got the corner.

Thanks in advance

Is the car a write off? Or can it be repaired as per normal and insurance covers it?
I wouldn't be too worried about gap, your insurance should pay the lease co of its written off and contract is null and void. Have a look on the lease deal thread on here, in case you need to get another car sorted.

Edit. Just seen your not sure if it's a write off. That'll likely take a few days to establish.

[skeeterm5]

soupdragon1 said:

Is the car a write off? Or can it be repaired as per normal and insurance covers it?
I wouldn't be too worried about gap, your insurance should pay the lease co of its written off and contract is null and void. Have a look on the lease deal thread on here, in case you need to get another car sorted.

Edit. Just seen your not sure if it's a write off. That'll likely take a few days to establish.

If the write off value is less than the outstanding finance the OP will be liable for the shortfall.

[OddCat]

Purchased a car on a lease ?

[soupdragon1]

skeeterm5 said:

If the write off value is less than the outstanding finance the OP will be liable for the shortfall.

If the lease company and the insurer value the car at different prices, that's for them to resolve, not the OP.

Or look at it another way, op has bought 2 products. 1 a car, the other, insurance for that car. That's all he needs. This has been discussed before, not one person was able to find an example of a consumer having to pay a shortfall on a lease write off. Happy to be proven wrong though.

[Slalon]

Not sure wether it’s written off. I told my insurance the damage and she put it into a computer programme which said it could be repaired but it’s the front crossmember damage worrying me.

[skeeterm5]

soupdragon1 said:

If the lease company and the insurer value the car at different prices, that's for them to resolve, not the OP.

Or look at it another way, op has bought 2 products. 1 a car, the other, insurance for that car. That's all he needs. This has been discussed before, not one person was able to find an example of a consumer having to pay a shortfall on a lease write off. Happy to be proven wrong though.

Here you go then..... https://www.moneysavingexpert.com/car-insurance/ga...

[soupdragon1]

skeeterm5 said:

soupdragon1 said:

If the lease company and the insurer value the car at different prices, that's for them to resolve, not the OP.

Or look at it another way, op has bought 2 products. 1 a car, the other, insurance for that car. That's all he needs. This has been discussed before, not one person was able to find an example of a consumer having to pay a shortfall on a lease write off. Happy to be proven wrong though.

https://www.moneysavingexpert.com/car-insurance/gap-insurance/

Eh? That's a link explaining gap, I know what it is.

[Slalon]

Just for clarification I actually haven’t purchased the car it is a lease and no option to buy. £2500 has beeen paid in 7 months with 29 more payments to be made @ £10000 so In total it’s 120000 for 3 year lease. If it’s a write off, what will I be liable for on a £28000 car

[richard-8zwx3]

Car less than a year old: certain insurers will give value of new one in case of write off. Direct Line for one.

[Josho]

What car?

Crossmember damage is nothing providing chassis legs are straight.

Airbags?

[skeeterm5]

soupdragon1 said:

Eh? That's a link explaining gap, I know what it is.

It also tells you about the liability rests with the leaseholder in the event the write off value is less than the outstanding finance.

Think about your suggestion for a moment...... I lease a car, decide I want to walk away from it for some reason, crash the car to have it written off and the lease company simply decide to write off any shortfall that may exist....... good luck with that.

S

[996TT02]

28k car - other car not much damage - won't be a write off. Sure front crossmember bends. It's either jigged back straight or replaced. Not for you to worry about how this is going to be replaced, for a body shop that is "meh - next".

[rallycross]

Replacing a front cross member is often quite simple and normal fix, depends on all the other damage and as someone else said things like airbags.
If you were able to drive it home and it’s at £28k chances are it will be getting repaired.

[TwigtheWonderkid]

richard-8zwx3 said:

Car less than a year old: certain insurers will give value of new one in case of write off. Direct Line for one.

Usually only where the policyholder is the owner, and the car was brand new to the policyholder. Most insurers don't do new replacement on lease cars.

[MalcolmSmith]

I seem to recall some leases will look at a write off as being the same as returning the car early so stil look for the contract balance, something like 40% of the outstanding payments. This is what specialist lease GAP pays on - I think -

I would insist on an approved agent repair and keep the receipt, a mate recently had to fight with the lease co as BCA branded MB approved body shop repairs (that I couldn’t see) as substandard and demanded money for 3 panels of spray. I think if he didn’t have the excess invoice showing it was an MB approved shop he might have had a job.

I dont think there was anything wrong with it, I think BCA just used a paint thickness gauge and decided it was duff.

[TwigtheWonderkid]

soupdragon1 said:

Or look at it another way, op has bought 2 products. 1 a car, the other, insurance for that car. That's all he needs. This has been discussed before, not one person was able to find an example of a consumer having to pay a shortfall on a lease write off. Happy to be proven wrong though.

He hasn't bought a car, he's rented it.

Suppose I borrowed your car, and told you I'd insure it. Then I wrote it off. Your written agreement with me values the car at £2000. My insurer values the car at £1500.

If I said to you "It's between you and my insurer, sort it out", I'm sure you'd say "fk off. We had an agreement, and I want £2K. You sort it out with your insurer, it's none of my concern, just get me my £2k."

[jjr1]

Slalon said:

Just for clarification I actually haven’t purchased the car it is a lease and no option to buy. £2500 has beeen paid in 7 months with 29 more payments to be made @ £10000 so In total it’s 120000 for 3 year lease. If it’s a write off, what will I be liable for on a £28000 car

£120,000 for a 3 year lease?

You are fked son.

[Trailhead]

It sounds like it can be repaired, so you will carry on with your lease as usual.

If it’s a write off, the lease co will ask you for the cars current valuation. This will (or should) be paid to you by the insurance company.

As others have alluded, these figures may differ and hence the prevelance of GAP insurance.