Friend got into an accident, seeking legal advice

[ak47num1]

My friend got into an accident recently with his lease car. The car is a total wreck, but fortunately he was not hurt.

Here is the scenario:

The lease contract that he signed allows him to purchase the car for a certain amount after 5 years. Now that the car is destroyed, that opportunity is forfeited. But he and I are concerned over the amount of money his dealer is charging him.

On top of the agreed upon deductible from the contract, my friend is also being charged for his excessive mileage. I am just wondering, since he no longer has the opportunity to purchase the vehicle, which he had planned to, is the charge on his excessive mileage justified? Or can it be fought off?

Also, are there any free legal consulting services for accidents like these?

Appreciate any help from the knowledgeable individuals around here

[Supershyguy]

no insurance?

if you pay the full least payment plus the purchase price, then you should have to pay the extra mileage

and since its a total lost, should you use insurance to take care of it?


I dont understand..... we need some more info i think

if the insurance company paid for the damage/lost then I dont understand how they would make you pay for the extra mileage lol

[gman]

The car is destroyed. There is no excessive mileage.
I would worry about another area instead of this particular one.
For example, does his car insurance cover everything?

What kind of legal consulting you are looking for? Fighting the ticket, fighting the lease? If latter, not sure what you are fighting for.

[ak47num1]

There is insurance, but based on my research, the insurance company only pays for the current value of the vehicle, which make sense.

My main question is:

Since the owner is liable to pay the difference between

A. The amount you still owe for your lease
B. Current value of your vehicle

can my friend be exempt from the extra mileage charge because his opportunity to buy back his vehicle is now lost?

Thanks!

[sportsfan99]

My friend got into an accident recently with his lease car. The car is a total wreck, but fortunately he was not hurt.

Here is the scenario:

The lease contract that he signed allows him to purchase the car for a certain amount after 5 years. Now that the car is destroyed, that opportunity is forfeited. But he and I are concerned over the amount of money his dealer is charging him.

On top of the agreed upon deductible from the contract, my friend is also being charged for his excessive mileage. I am just wondering, since he no longer has the opportunity to purchase the vehicle, which he had planned to, is the charge on his excessive mileage justified? Or can it be fought off?

Also, are there any free legal consulting services for accidents like these?

Appreciate any help from the knowledgeable individuals around here

It really can not be fought.Some time the dealer are willing to bend at times.

[Supershyguy]

oh in that case. I am pretty sure your friend has to pay for the extra milage just because the dealership lost money on it since the value they got for the car is now lower due to the extra mileage

[Supershyguy]

I am sure if you get another car from them they would let that go.

[gilboman]

more info needed

how much time left on lease?
so is your friend basically asking the dealer to charge him for ending the lease now and he buying the car price?

and since it's a leased car, it should have full coverage from insurance so your friend should just pay deductable and let insurance deal with the dealer.

[gman]

There is insurance, but based on my research, the insurance company only pays for the current value of the vehicle, which make sense.

My main question is:

Since the owner is liable to pay the difference between

A. The amount you still owe for your lease
B. Current value of your vehicle

can my friend be exempt from the extra mileage charge because his opportunity to buy back his vehicle is now lost?

Thanks!

In the worst case, you need to pay:

The amount you still owe for the lease + buy back amount - what the insurance pay

Since you are "buying back" (i.e. you will own the wreck), there is no excessful mileage issue.

[Supershyguy]

how much is the extra mileage btw?

if its a small amount just pay it. not worth the time fighting over it

or it is over $3000 ?

[ak47num1]

Thanks for the quick response!

Really grateful. I have a few new questions:

1. How can I find out the amount the insurance company paid the dealer?
2. Here is the Gap protection statement from the contract:

"The Gap protection feature in this Lease ensures that if the Vehicle is lost or stolen and not recovered or destroyed beyond repair and We receive an insurance payment in the amount required to be maintained under this Lease. You are not responsible for the "gap" between the insurance settlement and any amount You would otherwise have had to pay upon default, except for the following, which You will owe:

(a) The amount of Your insurance deductible; PLUS (b) Any unpaid fees and taxes and any amounts due because ou have broken agreements in this Lease. These amounts include but are not limited to: (1) any past due Monthly Payments, (2) any unpaid fines, (3) any amounts needed to release liens or encumbrances, (4) any maintenance, repair, or operating expenses we have paid, and (5) any repossession and storage expenses and legal fees.

My question is does excessive mileage fall under (b)?

And to answer how much the excessive mileage is, it is $2500.

[Supershyguy]

Thanks for the quick response!

Really grateful. I have a few new questions:

1. How can I find out the amount the insurance company paid the dealer?
2. Here is the Gap protection statement from the contract:

"The Gap protection feature in this Lease ensures that if the Vehicle is lost or stolen and not recovered or destroyed beyond repair and We receive an insurance payment in the amount required to be maintained under this Lease. You are not responsible for the "gap" between the insurance settlement and any amount You would otherwise have had to pay upon default, except for the following, which You will owe:

(a) The amount of Your insurance deductible; PLUS (b) Any unpaid fees and taxes and any amounts due because ou have broken agreements in this Lease. These amounts include but are not limited to: (1) any past due Monthly Payments, (2) any unpaid fines, (3) any amounts needed to release liens or encumbrances, (4) any maintenance, repair, or operating expenses we have paid, and (5) any repossession and storage expenses and legal fees.

My question is does excessive mileage fall under (b)?

And to answer how much the excessive mileage is, it is $2500.

1. How can I find out the amount the insurance company paid the dealer?
Call them and find out lol well I guess your friend has to call them

2. not sure

but I know you are a great friend to have

[CSK'sMom]

From experience.... Don't let the insurance company deal with the finance company! You can negotiate with the insurance company when a leased vehicle is written off! Tell your friend to do his homework and find out what it would cost him to buy the same vehicle off a lot. Don't settle for less. In our case because we did our homework we walked away with a cheque in hand for over $3k after the lease was paid out. The dealership had originally told us that we would walk out with absolutely nothing, that they were the only ones that could deal with *our* insurance company. It was another dealership(different company) that actually sat us down and explained how it should work. Moral of our story... we'll never deal with that particular dealership or car company again.