Residual Value After Accident

This is my first leased vehicle (Jeep). We leased it a year ago with the possible intent of buying it at the end of the lease. It was about $55k and if memory serves, the RV after 4 years is $37k. A drunk driver hit it 10 months ago, we were without the Jeep for 6 months (supply chain issues). The claim is still open as we await a few small parts but we can drive it. The “driver”'s insurance is paying for the parts ($10k worth) and covered the rental.

I’m questioning on if there will be an issue at lease turn in. Is my residual value going to suffer? If so, is that a good thing for me if I choose to buy it and a bad thing if I decide not to? I’m curious while the claim is still open, if I should sue for the difference. I read that the leasing company (Ally) probably already did this. Trying to get any guidance from Ally on this is impossible and I don’t want a surprise in 3 years.

Your personal rv will go down. (Your contractual RV will not btw) Turn it in and walk away on lease end

Dont buy the car with an accident on it


Thank you!

+1 - this is one of the benefits of leasing. The bank (leasing company) now has to eat that depreciation. Turn it in and walk away. I hope you and your family were not injured.

some states will allow for the at-fault driver’s insurance to pay for depreciation from an accident

I’ve seen many posts about Diminished Value, but have yet to get concrete proof that a lessee can obtain it.

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I was referring to the comment on banks eating the dimished value. They’ll get some $ from insurance, lessee doesn’t own the car so no diminished value claim.