As a preface, this is a generalized statement based off of what I recall from reading this and other lease contracts and may or may not be accurate based on the specific Audi lease
I wouldn’t think so. The purchase at the RV (or the adjusted lease value) is a contract specific option made available to the lessee to execute, should they wish to execute a purchase option while the lease is in good standing.
The clause as to what the early termination liabilities are due to a totaled vehicle is a separate thing. In that situation, the lessee is liable for the delta between the market value and the adjusted lease value if the market value is below the adjusted lease value. The gap waiver is triggered, if the lease is properly insured, to cover that liability.
If one, for example, were to have had their insurance lapse and then get into an accident totalling the vehicle, they would owe the lessor market value for the vehicle, not the adjusted lease balance.
I’m sorry, but you’re changing the narrative of leasing to fit your desires.
One of the benefits to leasing is that if your car gets into an accident (maybe not totaled) you don’t lose the decreased value due to the positive car fax result. Not that a positive car fax is/was even a big deal, before or after COVID. You have the benefit of turning in the “broken” depreciated car at the end of the lease. Where as if you bought it you would have a $1-2k financial loss. Insurance doesn’t cover that. It depends on the market for that vehicle. Just try to find a used Camry/Any hybrid versus a Ford Explorer or Highlander in a normal market.
The current market is a fluke and nothing anyone could have planned around. I’m sure lease agreements and legal measures to protect consumers will be considered, but will take years to change. In a way we’re still benefiting from this with low buyouts and residuals going way up. The market will take a year or two to adjust.
There’s a legal issue with her “running a yellow” too. Most intersections and police units have accident camera which will resolve any confusion. My BIL (A Deputy Sherriff) had someone run a red light, full lock up not to hit them, they get a TINY scratch on their car, and reported it to the station. They all got a good laugh out of the video showing the person clearly running the red light, but didn’t ticket them either.
MY PERSPECTIVE: The most important thing to note is your family being injured in any accident, large or small, and being thankful for it.
Yeah, but a ticket isn’t going to make someone a better or more alert driver either. Especially since we have no ongoing driver education/training in the US. I used to do them for the discount, but it barely saved me the fee, even with the AAA discount.
It is also why I’d never drive a compact car. A company once tried to give me a Honda Fit as a company car, I said NOPE, and got an Accord. LOL But now we’re WAY off topic.
Unfortunately the LAPD vehicle that hit her was an undercover cop so there was no dash cam. The LAPD car T-boned her squarely in the middle of the car which is why it was an auto-total (it was explained to me that any time the middle column between the front and rear doors get hit, it’s an auto-total).
A few years ago my dad was in a similar accident where he hit someone but the other guy ran a solid red and the insurance assigned 100% fault to my dad and my understanding then was that the person turning always has to yield regardless of red (unless it was red for long enough that traffic was flowing like that crazy La Brea / Slauson accident from yesterday).
Airbags alone can total a car these days. Especially if they can’t get the replacement parts. My friend has a 150k older Subaru and needs a cat-back exhaust replacement. Normally, I would say not to, but replacing any car is rather difficult these days. Kia seems to be the only dealer with inventory.
This happened to me with Ally and my Tacoma. Buyout would have been ~28k in 9months, instead 41k went to Ally. I thought I hit the jackpot when the appraiser first told me the value. Nope got nada.
I experienced the exact same thing in June of last year. I actually posted my experience on this form If you don’t mind private messaging me, I would like to share with you the progress I finally made on this after 14 months.
Few years ago when my S5 was totaled, it was a lease, Audi received the full settlement check, and cut me the check for remember of equity. It was roughly about $7K. They didn’t keep the entire amount.
