Agree, all depends on what the bank’s policy is ultimately. Doesn’t hurt to ask.
You’re in luck pal. GM Financial will pay you the overage. They will receive the check from insurance, and whatever is left over, they will mail you a check for the overage.
Count your blessings. You’ll need to speak to their “Total Loss Department” . It’ll take a week or two, but once your account is reconciled, they’ll mail you the check .
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Blessed indeed!
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It appears to me that there are two parts to the question from @KStenzel’s original post. One aspect, about “lease equity” has been beaten to death, but what about the other aspect - having a car to drive for the remaining term of the lease?
Several people have noted that the lessee owns the car and thus has the ability to collect on the insurance payment, include any “overage.” Great, but what about their obligation to provide @KStenzel with a vehicle for the remaining term of the lease? Are they not the owner of the property but with a contractual obligation to rent it to the renter for the term of the lease? If the property gets damaged, are they under no obligation to provide a replacement/equivalent item for the remaining term of the contract/lease agreement?
The obligation is that OP payments stop. It’s a Rental, and that’s the limit of the obligation.
Hence why dumping a ton of Down Payment on a wrecked car is stupid, if you put down 10k and you wreck it TOMORROW, you lost $10k and 1 payment.
If it’s a Lemon, different rules apply though.
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It does do that…the problem is that it’s not your car.
Back in January I wrecked a friend’s car, and my insurance company settled with her for more than the car is worth.
Now I have to sue her to recoup the excess.
#notfair
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It depends on who the lessor is. I was in an accident in January (not at fault) and USAA payed me the overage directly for my FCA Ram 1500 lease. When I discussed this with FCA they said that even if USAA sent them the entire amount they would have sent me the overage but other manufacturers will keep the overage. It’s a case by case situation.
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It’s not clear cut, depends on the captive and the state.
And it’s probably too late to now pay it off and get it into your name.
The accident happened when it was not titled in your name.
Without a time machine, there’s no way to change that fact.
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My 2020 Tundra was totaled and I received a check after Toyota Financial Services was paid…approx 7k+, which had compensated my payments I had put into the vehicle prior to the accident, not sure if this helps, just my experience, best of luck!
This took a while and took A LOT of effort from me fighting with the insurance company to ensure I was fairly compensated, but they valued the truck at ~$14K over what my lease payoff quote was.
GM Financial has confirmed that the check was cut last week and I will be getting that $14K.
Getting into a 3/4 ton truck lease again was a PIA given the lack of inventory. So, I ended up with a different manufacturer and not fully optioned as I had.
All in all, I’m pretty close to whole. The $14K over my current 36 mo lease is an extra $388. My current lease payment was over $400 more than what i was previously paying. That said, I gave on some options but have a brand new truck with no miles now.
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With $14k equity you should’ve financed your new truck.
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I strongly considered it. I actually had the paperwork revised to a purchase deal, then had them change it back.
If the vehicle market falls apart due to the economy and supply chain issues being corrected in 3 years, I turn this in and take advantage of the market rather than being saddled by the vehicle I’m in.
If not, then I buy this one out.
I doubt the truck market will fall apart that bad.
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What does the new lease contract say about who gets the insurance proceeds if the vehicle is totaled?
Anyone know what US bank does in this situation?
No, but I guess I’ll find out soon enough.
Friend leased Toyota via US Bank and insured through Geico. Totaled it two weeks ago. There is a $9k equity and Geico is planing to send one check to US bank.
Here is an interesting clause in the US Bank contract - section 19 (C) - you will not own any equity in the car.
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