When you say ‘generally’ where did you see that? I remember at least 5 posts here where the OEM took all the money. And 1 post where they did not. And a lot of posts where the OP is going to ‘sue’ or something (like buy the car before they know its a TL) to get that equity.
If it is a LOAN, yes you get all the money and the loan company gets just enough to make themselves whole. a LEASE, they own the car so ‘technically’ they get all the money.
In reverse though, in most loans, if you are underwater you owe the loan company money, where in a Lease, the leasing company will not go after you for the ‘balance’. Well except for Toyota. Toyota does not include gap.
Thank you for the answer! That is why I posted this question for your input!
Generally whenever a leasing company receives more than the payoff ( when I terminated my lease early ), then they refunded the extra payment to me.
Follow up question: If they wouldn’t refund if they received more than the payoff balance, then will they require the remaining balance if they received less than the payoff balance from insurance company?
That’s a different thing, you overpaid according to the terms of the lease. They are obligated to give you that back. Total Loss is a whole different animal.
That does not matter in California. You can still sue in small claims court despite an arbitration clause as long as jurisdiction is met (it would be in a car lease deal) and the amount doesn’t exceed $10,000. Like I said, very consumer friendly.
It was generally the case before COVID equity craze.
My brother totaled Volvo S60 around 2017ish and Volvo send him check for equity.
BUT, during COVID most companies change rules AND contract language to capture any and all equity.
That’s what Nissan did with my Leaf and do DGAF when you can and ask/complain - the answer it’s in the contract and money ours. Btw, insurance also initially over the phone said I could get a separate check for equity and later on said they have to send all money to the leasing company.
