Hi folks, I recently totaled my new lease ('23 Volvo C40 Ultimate, MSRP of $62,xxx) after driving it about 1500 miles. The lease payoff is $45k.
To my surprise, the insurance ACV was $45k, and I’m wondering if it’s worth my time to appeal this number. It’s hard for me to believe that the car has depreciated THAT MUCH.
For context, I put down $5.5k (terrible idea on my part, I know, so we’ll skip that, for now), so technically, I won’t have to come out of pocket, but I was really hoping to recover the down payment that I can use for the replacement (the same car, but much much better deal).
When I discussed it with the insurance agent, they mentioned that I could hire an inspector (out-of-pocket expense) and try to re-evaluate the price.
I’m unsure what the “success rate” is with something like this, and I’m curious if anyone has any advice on my next steps.
@joeblogs nope, it was $5.5k down and $4.5k MSD (monthly payment was $416 for 36 months). The deal i have is 3k down, $4k MSD, monthly payment is $360 for 24 months)
@max_g here’s what I just got from the claims agent
It’s Volvo’s car (As it is a lease) hence in most cases they have the right to capture any ‘equity’ in the total loss. So if you get an appraiser to give you another $3000, the check is usually written to the legal owner, aka Volvo.
Just because original MSRP is $62k, but these cars are not worth that much in the secondary market. Eg. 2022 MY is trading around $37k range in the secondary market. So $45k for your model does seem a fair value.
Your insurance agent may understand the policy, but does not have access to your lease contract that would spell out what happens to any extra funds beyond the payoff. If it was a financed car it is a very diffrent situation as you own it.
This is probably a good example for the never ending debate of whether or not the down payment is gone in the event of a total loss. Wouldn’t want to deal with the headache alone.
@gopal I was curious about the GAP insurance solution for the next car…but yeah, not much I can do about it now. As @forbs said, it would be have been great if the actual cash value was $51k and the ~$6k excess would have made me whole.
@buster11xx Interestingly, my insurance required a copy of the lease agreement prior to determining the settlement amount. I was concerned that if they saw the payoff amount before that amount was determined, they would inevitably be biased and adjust the amount accordingly…but it didn’t seem like I had a way to prevent it.
You may consider to sign the lease with first month + MSDs only. There is no need to put an extra $3000 down payment. 3000/24 = $125. Basically you will see an increase of $125 plus some interest cost to your monthly payment.
I think everyone is harping on a statistical anomalie.
What are the odds of totalling a car twice in a two or three year span?
Yeah you hear about it more on here but only because people are online searching for help and answers. In real life totalling a car is rare for how many people are actually on the road driving.
OP should buy using any down payment formula he wants. Some people just like seeing the numbers look a certian way. Life is a risk.
