It was all min possible down in Texas which was the fees and first month so around $3k worth, no MSDs. The buyout option on the car in the financial portal was about $57k and that’s what the insurance appraised it at but the cars I mentioned are more $59-61k listed.
Equity was the wrong word, I understand from BMW’s letter that the insurance payout for the value of the car in excess of the amount still due on it could be used towards a new lease hence I am trying to find a way to force a reevaluation to be able to get that money applied towards the new car.
Here is the text of their letter:
BMW Financial Services has been informed that the vehicle referenced above has been declared a total loss by your insurance company. Because this vehicle has been declared a total loss, pursuant to your Motor Vehicle Lease Agreement (Lease), please be advised that BMW Financial Services has terminated the Lease. As set forth in the Lease, you remain responsible for certain payments specified in the Lease, which are described below. This termination process involves negotiation of settlement with your insurance company, the application of settlement funds to your account, and billing of any amounts identified in your Lease. Because the Lease has been terminated, we will no longer accept customer payoffs at this time, and you may not purchase the vehicle.
In light of the circumstances, we would like to inform you of a Loyalty Payment Credit (LPC) for which you may be eligible, should you choose to lease or finance your next vehicle with BMW Financial Services. The LPC amount may be up to 100% of the amount remaining after subtracting your contractual Lease payoff from the total loss insurance settlement. Please note, the LPC cannot exceed 50% of the sum of total monthly payments on the new lease or finance agreement. This offer, if eligible, is good for one year from the date of the total loss described above.
Here’s how the LPC program works: Once your new BMW Financial Services account is established, the LPC (calculated as discussed above) is applied as a credit within 2 weeks after the new account is opened. You may use the LPC credit either 1) to reduce your monthly payments each month by a certain amount or 2) to satisfy your monthly payments until the LPC balance is fully used.
Your eligibility and the amount of the LPC will be determined upon BMW Financial Services’s receipt of the insurance settlement payment from your insurance company. If you qualify for the LPC program, we will send you an email with the total amount of your eligible credit and the date the credit expires.
Please note, pursuant to the terms of your Lease, you are responsible for any past due payments, late fees, official fees and taxes or other assessments, property taxes, any deductible, and other items deducted from the Actual Cash Value of the vehicle by the insurance company. The insurance settlement amount must be received, and your account must be closed with a $0.00 balance, before the LPC can be applied to your new account. As required by law, we are notifying you that negative credit information reflecting on your credit records may be submitted to a consumer reporting agency if you fail to fulfill your existing obligations as specified in your Lease. In the event there is any change regarding the insurance settlement for this vehicle, we will contact you and advise you of the process moving forward.
