Total Loss Questions

Hi all! I’m pretty inexperienced when it comes to cars/leasing and am looking for some insight.

I was in an accident back in March. I finally found out last week that my car is a total loss. I am leasing a 2019 Subaru Impreza and my lease end is around the corner - July 15. I called my dealership to discuss options and he said if he were me, he’d lobby to be getting some kind of check. I don’t understand why I would be receiving money, even though I’d obviously welcome that.

Here are some data points that I suspect would be useful in answering this question:

Value of vehicle upon signing my lease: $18,994
Gross capitalized cost: $20,535
Total paid end of lease: $9,954.61
Residual value: $12,273.96

Per my insurance company:

Value of vehicle: $20,148 minus my $500 deductible
Cost to repair: $12,472
Salvage value: $6,996

Any thoughts? Thanks so much!

What does your lease contract say regarding how insurance overages are handled?

An insurance “overage?” I’m not familiar with the term and don’t see it in my lease, could you clarify?

It’s the difference between your insurance company’s valuation (settlement offer) and the balance owed to the bank.

BTW there’s no reason to talk to the dealer; they have 0 involvement here. The car is or was owned by the bank and they need to be paid first before you get any overage or excess monies (i.e. the difference defined above)

In your lease contract there is a section on Terminations and all the scenarios, you’re looking for that to see what happens in a total loss.

This isn’t what you signed at the dealer, this is the entire lease agreement you agreed to. Chase/Subaru FS can get you a copy if you don’t have one.

thanks. i’ll need to clarify more. is the insurance’s company’s valuation the $19,468? and if i paid $9,554.61 over the course of the lease, the amount still owed is the agreed upon gross capitalized cost at the beginning of the lease ($20,535) minus what I paid, or $10,580.39?

so is the overage the difference between $19,468 and $10,580.39 or is it the difference between the salvage value $6,996 and $10,580.39?

really green when it comes to all this. appreciate all of your comments!

my lease has a default and lease termination section. it lists default, early termination, damage, loss, or danger to the vehicle, purchase option, end of term liability, and excess wear and use - would it be this section you are referring to?

Your insurance company is going to write a check to the bank for ~$19500 (ACV minus deductible). Your lease “payoff” is probably around ~$13000 (you can’t just take cap cost minus total payments since that includes interest, the closest estimate is residual + remaining payments but that is also overstated a little). Depending on the leasing company, some will pass that overage back to you and others will keep it since they “own” the car. Depends on their policy & wording on your contract.

Yes, specifically loss

Hi again. I found a copy of my lease.I’m still not certain whether I would be getting any portion of my overage back.

You might get the money based on how they use the term “adjusted lease balance” in the total loss section - this would your payoff based on cap cost - depreciation portion of payments you’ve already made.

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