To answer directly, did not ask their policy before signing the one pay. Never imagined this would happen and dealer didn’t mention this potential pitfall when we were making the deals. Three years of no payment and buying out the lease At the end seemed like a convenient way to go about paying for the car. Thanks for rubbing salt in the wound though…
Don’t need to ask them,m. The question is what does you contact say? There should be something on a paperwork to explain how losses are processed.
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You said the accident was two weeks ago, I’d imagine regardless of the outcome it’s going to take considerably more than 2 weeks to settle everything. I could be wrong, and I get your panic but read your contract.
OP claims to have reviewed the contract and there was no statement in it in case the lessor owes the lessee in case of totaled car on a one pay.
If you don’t get anywhere, I recommend speaking with legal counsel, OP. It may just be a matter of waiting for The lessor to do their own evaluation and give you notification when it occurs. I think legal action would be the only way to force a response from the lessor.
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Several years later and they are still doing it. My market value is 9k higher than what is owed. I was at the end of my lease. Nowhere in the contract does it say they will do this. Only about GAP insurance if the market value is lower than what is owed. I went into sales office and found out they are doing this to multiple people. How did you get this resolved?
You can try suing them, but depends on wording on their lease agreement. Most banks don’t directly say “we will keep any excess proceeds” but I think the way they justify it is- 1) lease typically has a clause that says if vehicle is a total loss the lease is terminated, which ends any right you have to buy the car for your payoff amount. 2) lease also says you must insure vehicle and add their leaseholder interest on the insurance policy. This means when the car is totaled, they can step in your place to collect the ACV $$ directly from insurance company as if they are the insured on the policy since they own the asset.
Some banks provide a check for the difference, but not all. I think most don’t. The car isn’t yours and you’re not necessarily owed the the positive equity if the market shifts that way. That’s the entire purpose and benefit of leasing.
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Are you sure about that? My hyundai lease contract specified that they get to keep the overage when the insurance pays out fair market value for their asset.
Yes, I’m sure. I’ve had people who are experts in contracts read through it. The Hyundai finance manager even said it wasn’t correct. And the person who started this thread stated that he got his back as well as others did through time. This is no different. They seem to change what policy they want to follow when it suits them.
What year was your contract from?
I believe it was late 2019. I’ll look and see if I still have it laying around.
Please lmk. Mine was late 2019 and there was no verbiage that said they could do so.
Haven’t had any luck yet. It was a couple cars ago and a cross country move ago, so not sure where it ended up.
Can you take a picture of the terms and conditions of your contract? (no need to show any personal info)
What state are you in? Mine was a California contract.
Total Loss section stated that you follow 22C to figure out value.
Can you post the total loss section. If memory serves, thats where the discussion was on mine, not in the early termination area.
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most of it is about default and GAP which neither applied to. It says if there’s a total loss, value is calculated by section 22C.
Justb, Did you ever get a resolution?
