Rear ended 2019 Lexus RX450H

I have leased 2019 Lexus 450H and the lease is ending at the end of the month. It only has 25K miles on it. We put down 8K on the car at the beginning of the lease and we knew at the time that we were going to buy the car (we just wanted lower payments at the beginning). The car was rear ended pretty badly a couple of days ago and the insurance company is currently figuring out whether the car is a total loss or if they can fix it. The car was also scraped a little bit at a Whole Foods parking lot a couple of months ago when we were parked and we found the guy who did it (camera and security guard footage) and fixed it through his insurance. Up until the accident the car was in perfect shape and we took great care if it.

The residual value of the car is current at $33K. If the insurance company deems it to be a total loss, how does the insurance payout work? If they asses the value of the car to be more than $33K, will they write a check of 33K to the leasing company and a check for the rest to me or just payoff the $33K to the leasing company and I get nothing? I’m pretty sure that the car is currently worth a lot more than $33K given current demand, its low milage and no problems up until this point.

If the insurance company does not deem this to be a total loss, should I buy out the lease at $33K and keep the car given current prices of cars? Can I negotiate with the dealers to reduce the residual value since they really wont be able to sell the car at this price because of the accident and there are 2 accidents on the carfax.

We were in the process of buying out the lease and had got the bank approval to buy the car before the car was rear ended.

What does your contract say - everyone

I’ve only seen ccap give the overages to other people

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ccap? Sorry I’m not sure what that stands for

Chrysler capital

Ah… Got it.

The contract doesn’t mention anything about reducing the price/anything about overages. This is what it says about damages:

"You agree to release to us all insurance or other proceeds you receive for
damages or loss to the Vehicle (including any premium refunds on the Required Insurance) up to the amount you owe us."

For total loss:

If the Vehicle is subject to damage or theft resulting in a total loss, and you have maintained the Required Insurance set forth in Section 15 (15K/30K), we will waive the Early Termination charge set forth in Section 29(d), after we receive the insurance proceeds and you have paid any
deductible amounts.

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That second provision seems to say that Lexus gets all the proceeds from the insurance company if the car is totaled.

With the damage shown in the photos, you probably are better off turning in the car at the end of the lease, if it is not totaled.


TLDR: no.

The bank owns the car and sets the RV, not the dealer.

Efficiently run banks don’t employ people with a job description that includes negotiating with lessees on their lease-end buyout.

GL finding anyone empowered to reduce the RV/buyout for you.

You’re not getting the overage.

But I would shop around the VIN with two accidents on the record to see if you can make any money. Luxury cars with accident histories are usually a nightmare to sell

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Did the airbags deploy? Is there front end damage? This thing might just survive the salvage yard.

No, airbags did not deploy and no front damage. Just the back.

@rob123mark this is good to know. Didn’t know that luxury cars with accident histories were hard to sell.

I’ll look around to see the resale value with the VIN

Not that this helps much, but I have seen lately that even cars with minor damages seemed to get totaled. The reason I have been told is due to a shortage of parts/long repair time. It might be worth discussing with the adjustor you are working with.


Hard choice to make here. OP will not see the the difference if car is totaled and if OP buys it out that 10 day tax temption in CA could help some. Quick plate scan here shows ALgo will pay $38000 for your car. Other sites came in much lower.

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Ask the insurance company. There have been various outcomes reported here over the years. There is GAP insurance and there are GAP Waivers. If it is a GAP waiver it is unlikely that you are getting anything “extra”. Typically, you pay the insurance company your deductible and walk away. Based on the total loss information you posted above, expect that to be the case.
I would move on from this car.

You lost the gamble on the money down piece. Probably was not a good bet to begin with. :blush: Not sure what the money #’s would be for the vehicle to be salvaged, but that is not bad damage. A bumper, under tray and trunk lid. Less than 10K for sure. If you were planning on keeping it, I would say have the insurance fix it, and drive it till the wheels fall off… Market is not going to improve anytime soon, and you have a nice vehicle in hand.


I mean he made it to the last month of the lease, so not all is lost with the down payment - got 35/36 months of it. :slight_smile:


I guess, if you think he got the full “utility” out of the vehicle, but he put money up front with the expectation of buying, and having for several more years. TCO is what determines the value in my mind. Putting 8K up today, for a car you “may” have in 8 or 9 years is a gamble.

I would advise sleeping with one eye open.

The “never put money down” cult is going to come after you.

And they’re ruthless. :wink:


We never kick someone when they’re down an $8k CCR that got taken from them by an accident that “almost certainly won’t happen”

I’m 32 months-in myself, waiting for a distracted driver in a grocery store parking lot to come for my perfect factory paint job. Many have tried, none have succeeded.

OP because it’s an H and where the battery is, my bet is cheaper to total, but here’s hoping if you want to save it you can - I’d be shopping it’s replacement either way.

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OP is in the final month. 35/36=97.2% of the rent charge savings has already been realized.