Prepayment on Lease - Possible to get Back?

[brettnussb]

I posted a few weeks ago about my car being over the limit amount of the guy who hit me in a not at fault accident.

I ultimately decided to go through my insurance and declare it a total based on the revised estimate after the disassembly and a 3+ month turnaround to get it back. The car was 5 of 36 months into the lease and I learned the lesson the hard way and paid $2K up front to my dealer when I leased to make my monthly payments lower. Since I hypothetically only used 5/36 of this prepayment, do I have any chance of recouping the remainder since I was not at fault (citation issued to validate my claim)? Can I take the driver who hit me to small claims court to try to recoup this?

On another note, since everyone on this forum seems so knowledgable, I was told by Audi finance that my payments were for the month prior not the month going forward. If that's the case, why am I paying my dealer today to get a new lease and not 30 days from now when my first payment would be due?

Thanks!

 

[carmania]

It's hard to say exactly if this is your situation, but your up front payment is probably a mish mash of fees. It's probably not your first payment, unless you are putting down some cash up front. That would include all the usual fees like title, taxes, doc fees, etc.

Regarding your up front payment of $2k, you can always try to get that from the guy that hit you, but if they are going through their insurance company then it might be more difficult. A small claims court could rule in your favor, but if the insurance company has already said they've given you a fair amount then you will have to argue why you want more. Then it's up to the judge to determine if you are right.

It might be better to hire a lawyer to negotiate with the insurance company before you accept payment from them. Insurance companies generally aren't looking to start a long court battle that costs a lot.

 

[fed up]

Also, watch what you sign as part of the settlement. Accepting his company insurance check against your loss could preclude you from any small claims action on your part. You paid 2K upfront in order to lower your monthly which would be no different than 2K up front on a sale vs a lease. your settlement is going to be for the value of the vehicle, not what you paid. Much in life is not fair

 

[adjusterjack]

I was told by Audi finance that my payments were for the month prior not the month going forward. If that's the case, why am I paying my dealer today to get a new lease and not 30 days from now when my first payment would be due?

Because interest starts accruing from the day you make the deal and take the car home. If your first payment is a month later a large part goes to the interest that accrued the first month and a small part goes to principal. Don't think for a minute that you aren't paying a down payment toward the price of the car plus monthly interest just because it's a lease.