So unfortunately my 2023 Audi A4 was totaled while parked in my driveway.
After figuring out the buy out from Audi would be $39k, the insurance company came back with a market value of $46k for the vehicle.
I looked in my leasing contract and I believe it says that Audi financial will pay out the excessive amount, however i’m not completely sure and would like for some other eyes on it.
If not Audi financial isn’t aware the vehicle is totaled, should I exercise my right to buy out the vehicle?
You should contact audi financial regarding it being totaled in accordance with the terms of your contract rather than go down the insurance fraud path with a buyout.
Wasn’t trying to commit fraud, just was looking over posts within the same topic and saw people saying that.
However per the screenshot above I believe I should be paid the excess amount.
Pretty sure @DonnyAudi or @Samaudibh said before it’s AUDI FS money, you borrowed the car man
Was yours a single payment lease?
So this happened to my girlfriend and her sister. One car was totaled a one car was flooded, long story short the check gets sent to the finance company (or bank) they pay it off then cut u a check with the remainder. Both two different car companies too
Didnt say that was your intent, but you are talking about potentially buying out a vehicle rather than notify the bank of damage to their asset in accordance with your contract terms to try to claim ownership to capture an insurance settlement.
This is not always the case.
No however the contract says the same for (Monthly Payment Leases)
“If the insurance settlement we receive is greater than the Net Lease Balance, you will also receive a credit for the excess up to the amount of the Additional Credits deducted above.”
Is what makes me believe that i’ll be paid the difference. Not really trying to make money whatsoever I just put a downpayment on the vehicle as I planned to purchase end of lease and would be recouping those funds.
What a bummer, I’m very sorry to hear this but happy to know you and your family weren’t in it at the time.
Have you spoken to your insurance adjuster about the excess funds? I know it’s been discussed here before that the funds generally go to the lessor and what they choose to do with them is up to them (in accordance with your lease terms, of course). I work in insurance and I actually have seen our adjusters happily send excess funds to our insureds in total loss lease situations. It all depends on the financial institution.
I imagine that if you were to buyout the vehicle, you would lose the “perceived” equity. $46-39 = $7K. As you would still have to pay sales tax on the vehicle (unless you are in a state where the sales tax is upfront on a lease). Then, you would own a pile of trash (and have to pay to get rid of it) and maybe some change.
Secondly, your insurance company has it down as a lease. They should send the check to the original owner. But this might differ from insurer to insurer. I would let Audi know that the vehicle has been totaled. As is written in your contract above, it appears that you would get the $7K without having to pay the sales tax. Please let us know over here what happens.
My aunt had a similar situation with Volkswagen and they said they will keep the excess . So I would suggest you do a buyout before they transfer to the total loss department . Else you might end up losing the 7k.
Reading your language looks like they will return any down payments that you made . But if there is positive equity it will go to Audi.
Just to be clear what youre suggesting, you would purchase a damaged vehicle and try to convince your insurance company to pay you for damage that occured prior to your owning the vehicle?
[quote=“Condorp16, post:9, topic:485383”]
“If the insurance settlement we receive is greater than the Net Lease Balance, you will also receive a credit for the excess up to the amount of the Additional Credits deducted above.”[/quote]
I read this as the credit being capped up to the amount of the Additional Credits – what’s that definition?
Is that considered insurance fraud ?
Hard to say if they’d do anything about it, but yes.
Even if you did buy it out, you still wouldnt be entitled to the insursnce payout since it would be due to the owner of the vehicle at the time the incident occurred.
Yeah, I will ask then -
Sooner or later some genius is gonna buy out their totaled lease and then get denied any payout by their insurer.
Didn’t we have one of those in the past 6 months that never came back after to report?
