Diminished Value on Leased Car

[rogueone]

I have a vehicle that was involved in a non-at fault accident. My car will now be worth considerably less after the repairs. Before the accident I planned on trading it in for another vehicle before the lease end date.

How does diminished value play in this scenario?

do I get the amount of the amount of diminished value or does the lessor get it?

 

[DIMINISHED VALUE]

I have a vehicle that was involved in a non-at fault accident. My car will now be worth considerably less after the repairs. Before the accident I planned on trading it in for another vehicle before the lease end date.

How does diminished value play in this scenario?

do I get the amount of the amount of diminished value or does the lessor get it?

The times they are a changing when it comes to automobile diminished value. Now rental car companies are going after renters who returned cars with damage charging exorbitant amounts that you are liable for if you declined the additional coverage. I added a rider to cover that which just cost maybe an extra $40/Year.

As far a leased cars, if you plan to keep the car then you'll want to figure out how to be compensated for the car's loss in value as a result of the repair history. If you are turning it in then it is to the the leasing company's benefit to go after the other person's insurance company.

But as I wrote previously, the times they are a changing and maybe lease companies have started to charge lessees for diminished value. Better do your due diligence and find out the answer before you turn the car in. Diminished value amounts can easily reach the tens of thousands of dollars.

 

[InsCommentary]

Most auto policies specifically exclude diminished value. There are a couple I'm aware of that make this available by endorsement, but that's the exception, not the rule. It is usually an uninsured loss that materializes at the time of sale.

 

[Josh]

Most auto policies specifically exclude diminished value. There are a couple I'm aware of that make this available by endorsement, but that's the exception, not the rule. It is usually an uninsured loss that materializes at the time of sale.

Depends on the state.

Practically speaking the check is paid to the person leasing the vehicle for the repairs and the expectation is the repairs are done, so the diminished value might just be a bonus for the claimant.