CA - Buy out or new lease after collision

Hi all, I’ve been going back and forth about this situation for days since I was hit by another driver.

For context:
Currently leasing: 2020 Volvo XC90 T6 AWD
Buyout price at lease end: $38,500
Currently monthly payment: $555

I was all set to buy this car in a matter of 4 weeks having 2 payments left on the vehicle. Then while eating lunch in a diner another driver swiped the entire passenger side of the vehicle scraping/damaging almost all panels on that side of the vehicle.

I’m honestly now very torn, post repair which the responsible parties insurance (AAA) is paying for I am really unsure what the best thing to do is in the current economic climate. Start of this year I was convinced buying the car was the right thing to do given interest rates and cost of cars. Now given I’d be buying a car with repaired panels I’m really not sure what to do.

My gut says getting into a newer 2023+ XC90 on a new 36 lease is the way to go but now I’m really not sure if I’m self owning myself by buying it, potentially bailing the dealership out. I’m really not sure how to think about this as this was my first leased vehicle after years of buying new/used straight up.

I would appreciate as much advice as possible.


dont buy it man
when it comes time to sell it you will get lowballed because the accident

post a picture of the damage, my mind is all over the places


Do not buy it. The car now has a scarlet letter attached to it and right now it’s Volvo’s problem. Once you buy it out, it becomes your problem. Unless there is something immensely special about this car to you, get it fixed and let it go.

To cover your bases when it comes time to turn it in, have it fixed at a Volvo Collision Center.


This was exactly the information I was hoping for when posting this. I really appreciate the advice.

I am currently taking it to a shop on that list as of tomorrow to get the repair process started.

Would you say this for any accident or just a really expensive repair? I had a tiny ding on the back corner of my Audi SQ5 bumper, repairs were $4k (I know, crazy), but it was a really minor accident. I’m considering buying out the lease. Is it a terrible idea or no big deal bc just a tiny ding from a car that was parking?

If it shows up on carfax it’s a big deal.


I had the same situation with my MDX two months before lease was up. The vehicle was fixed at an Acura dealer, which coincidentally offered me the best lease price on a new one. I would not purchase the car, unless it is substantially more expensive to lease a new one.

Walking away from the car, at the end of term, after an accident is one of the MAJOR advantages of leasing.

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If you plan to drive it forever (to the flattest part of the depreciation curve) the hit to the value is a marginal consideration.

If you’re only going to keep it for a couple of years, I’d turn it in at the end and wouldn’t look back.

If this was a high-speed impact and/or if there is meaningful mechanical (vs cosmetic) damage, I’d say turn it in no matter what.


How many miles on this car?

28,000 miles

It’s a wash whether you keep it or get a new lease. If it had been driven only 10k miles, i would have said keep it.

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Same situation here.

Lease on my A6 ends in November, someone backed into me in a parking garage and front bumper was repaired via insurance for about ~2k.

My buyout is $27k, and I am under mileage at 30k miles (42K allotted since I extended 6 months)

I enjoy the vehicle and will buy it… what else can I get for 27k?!

My wife wants to buy out her MDX at the end of her lease. She’s had it rear-ended and side-swiped by an eBike with no insurance, both were around $2k in damages. Residual is like $27k. Typically, I would want to get her a new lease because I love getting new leases, but we test drove a lot of vehicles 2 years ago, and I know she’s not going to like anything, and the new MDXs are kind of expensive. She also thinks they’re too masculine. My ulterior motive is to keep the MDX as our road trip vehicle until we start having major issues, and in couple of years, lease an EV for her.

Yeah but the Audi will be out of warranty soon and will require that chain tensioner service soon

Ditch it or cash out any equity.

Who cares? You’d be bailing out the bank, not the dealer. It’s just a car and one that’s been wrecked, kick it down the road.

@eezm33 @cahrens you need to see what your VIN is worth

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This is a no-brainer considering how much money Volvo is throwing at returning lessees via the bonus loyalty rebate or whatever it’s called. 24m might be the best term FYI.

$42-43,000 after taxes for a majorly damaged/repaired XC90 is unthinkable. Absolutely no one here would do that in their right mind.

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My dude, return it and get a new lease. You might even be able to get a lower monthly payment if you’re very lucky. Volvo’s are leasing well right now. Even if you didn’t have the damage I would do that, but especially with the damage it’s a no brainer. The loan alone on $38k is going to be a big step up from your $555.

Some recent examples from the forum:

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MUCH appreciated the advice. Do you have a link so I can read up about the loyalty rebate offer?

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