There is ONE potential downside to car leasing

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[ARCHIVED THREAD] - There is ONE potential downside to car leasing (Page 1 of 4)

Posted: 4/25/2017 2:20:22 PM EDT

I love leasing, and I've leased all my and my wife's cars for the last 20 years. It's kept us in mew cars for a lot less per month than buying. And if you're sure to get GAP coverage, you'll be made whole in the event the car gets totaled.

But ... My 10 month old car has now been violently rear-ended twice in 4 months. $10,000 the first time, and now $14,000 this time. Not my fault either time, so the other guy's insurance is paying for the repairs. Fine, right?

Nope. What happens is that the value of my car - whether I take it to the end of the lease or trade early - is less because after all, it's been wrecked twice. Diminished value, they call it. So if I trade, any halfway sharp dealer is going to check and find out and offer me several thousand dollars less for it. And if I take it to the end of the lease, the leasing company will probably know, and they'll charge me for the fact their car has been wrecked.

The bottom line is that, even though I'm an innocent victim, I will get fucked over for several thousand bucks for being in the wrong place at the wrong time.

Diminished value claim, you say? Yeah, that's fine if you own the car, but with a lease, any recovery goes to the leasing company because they're the owner of the car. And that means I'll have to pay a DV company to run the claim for me, and any recovery will just go to the leasing company. If I run out the lease, they should apply that to the car and maybe I'd be okay. But a twice-wrecked car isn't my cup of tea and I'll likely trade it after it's fixed, so I'll get screwed.

I still like leasing, but you have to be aware that you can fall through the crack in certain specific situations.

Tl;dr - I'm getting screwed because I got rear-ended twice and I'll probably have to eat the diminished value because it's a lease.

Posted: 4/25/2017 2:22:51 PM EDT

[#1]

Call Marco, he helped me get out of my lease.

Posted: 4/25/2017 2:23:13 PM EDT

[#2]

In before told you so. Tell them you'll buy it at the diminished value, although I'm sure the contract says you can't. They're going to get their money one way or the other.

Posted: 4/25/2017 2:23:34 PM EDT

[#3]

You have been renting cars for twenty years,whats getting fucked over for a few more thousand matter now?

Posted: 4/25/2017 2:24:45 PM EDT

[#4]

Better call Saul

Posted: 4/25/2017 2:26:43 PM EDT

[#5]

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Quoted:
You have been renting cars for twenty years,whats getting fucked over for a few more thousand matter now?

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TPNI.

Honestly if you're at a point where you would complain about this you probably shouldn't be leasing the vehicle. It was vanity that got you into this mess, not circumstance. Suck it up buttercup.

Posted: 4/25/2017 2:26:48 PM EDT

[#6]

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Quoted:
You have been renting cars for twenty years,whats getting fucked over for a few more thousand matter now?

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You owe me a keyboard

Posted: 4/25/2017 2:29:52 PM EDT

[#7]

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Quoted:
You have been renting cars for twenty years,whats getting fucked over for a few more thousand matter now?

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+1

Posted: 4/25/2017 2:29:58 PM EDT

[#8]

Tell us about these Mew cars.
Are you in the dairy industry?

Posted: 4/25/2017 2:30:02 PM EDT

[#9]

renters are weird.

Posted: 4/25/2017 2:30:32 PM EDT

[#10]

Quote History

Quoted:
You have been renting cars for twenty years,whats getting fucked over for a few more thousand matter now?

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Posted: 4/25/2017 2:32:03 PM EDT

[#11]

Quote History

Quoted:
Call Marco, he helped me get out of my lease.

View Quote

Posted: 4/25/2017 2:34:58 PM EDT

[#12]

Quoted:
<snip>

Tl;dr - I'm getting screwed because I got rear-ended twice and I'll probably have to eat the diminished value because it's a lease.

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That would be a text book definition

Posted: 4/25/2017 2:36:25 PM EDT

[#13]

Why should the car owner take a ride on the price for something that happened while you were driving?

If you were that worried about value you wouldn't have been renting cars for twenty years.

Posted: 4/25/2017 2:37:51 PM EDT

[#14]

Sounds like the car needs to disappear...

Posted: 4/25/2017 2:39:58 PM EDT

[#15]

I thought diminished value claim lawsuits were becoming more and more familiar these days regarding wrecked vehicles that are not declared total losses. Why? Because any wrecked vehicle with a mark on the Carfax report is automatically worth several hundred to several thousand dollars less than a comparable non-wrecked vehicle.

Posted: 4/25/2017 2:40:19 PM EDT

[#16]

His insurance company should provide you with a check for diminished value. You save that money and use if needed when you turn the car in.

Posted: 4/25/2017 2:40:28 PM EDT

[#17]

You apparently have failed to pepper your angus sufficiently.

Posted: 4/25/2017 2:40:44 PM EDT

[#18]

Rear ended twice in 4 months? Don't be surprised if your insurance rates increase at renewal time even though you weren't at fault.

Posted: 4/25/2017 2:43:07 PM EDT

[#19]

Hopefully you learned your lesson about leasing.

You're renting a car; you don't own shit and therefore don't have a say. Get acclimated to disappointment.

Posted: 4/25/2017 2:43:49 PM EDT

[#20]

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Quoted:
His insurance company should provide you with a check for diminished value. You save that money and use if needed when you turn the car in.

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this.

Posted: 4/25/2017 2:44:27 PM EDT

[#21]

Quote History

Quoted:
You have been renting cars for twenty years,whats getting fucked over for a few more thousand matter now?

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This.

Posted: 4/25/2017 2:44:55 PM EDT

[#22]

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Quoted:
You have been renting cars for twenty years,whats getting fucked over for a few more thousand matter now?

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Ding, ding, ding.

Posted: 4/25/2017 2:46:26 PM EDT

[#23]

you're getting fucked no matter what.

BOHICA

Posted: 4/25/2017 2:49:56 PM EDT

[#24]

Quote History

Quoted:
His insurance company should provide you with a check for diminished value. You save that money and use if needed when you turn the car in.

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This. You'll need to file an additional diminished value claim with his insurance.

Posted: 4/25/2017 2:52:02 PM EDT

[#25]

Auto leases, the time share deals of the automobile market.

Posted: 4/25/2017 2:52:11 PM EDT

[#26]

Do you actually know for a fact in your lease agreement that the lease company is going to charge you money?

Posted: 4/25/2017 2:58:20 PM EDT

[#27]

Their car, their rules.

If you feel you have been getting a great deal for the past 20 years, divide your loss by 20 and average it out if it makes you feel better.

Posted: 4/25/2017 3:00:33 PM EDT

[#28]

OP - I'm thinking you're not real good at math.

A.W.D.

Posted: 4/25/2017 3:01:50 PM EDT

[#29]

Quote History

Quoted:
You have been renting cars for twenty years,whats getting fucked over for a few more thousand matter now?

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Hey look, it's fucking MARCO!!!

Posted: 4/25/2017 3:02:15 PM EDT

[#30]

Lessening is like borrowing someone else's car. You are on the hook for it. Pay the man.

Posted: 4/25/2017 3:15:47 PM EDT

[#31]

OP check your lease 99% of them have gap insurance built in.

As for the rest of the vast amount of stupid in some of these replies, not gonna waste my time.

ETA: if you're gonna turn it in, you're not liable for the difference. Your residual is in your lease, which is legal contract..... And is also the reason the lessee puts gap insurance in the lease.

Posted: 4/25/2017 3:16:04 PM EDT

[#32]

You should sue the other guy's insurance company for loss of value in your car. You'll most likely win.

Posted: 4/25/2017 3:17:08 PM EDT

[#33]

Quote History

Quoted:
renters are weird.

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Yep, renting and fleasing never makes sense.

Posted: 4/25/2017 3:18:41 PM EDT

[#34]

I don't understand how people can afford leasing. I enjoy not having a payment. I'll go be poor somewhere else I guess.

Posted: 4/25/2017 3:19:06 PM EDT

[#35]

Yeah, I don't think this went the way OP was thinking.

Here's my 2 cents. Whether you owned it or leased it, you would still be looking at the same additional damage for loss of value, which is a haggling point with the insurer. They will say that it's been completely repaired and restored to the condition it was in before the wreck so the car is still worth the same, but most will acknowledge some loss of value and negotiate a little bit. Because there is no known formula, everyone is guessing. And, the second insurer is also going to argue that any loss was a result of the first wreck rather than the second. However, if your leasing company tries to hit you with loss of value because it is their car that you're renting, you'll need to negotiate that number with them using the same arguments. Whatever you can squeeze out of the first and second insurer should be saved to pay the car owner/lessor.

Posted: 4/25/2017 3:27:27 PM EDT

[#36]

Quote History

Quoted:
OP check your lease 99% of them have gap insurance built in.

As for the rest of the vast amount of stupid in some of these replies, not gonna waste my time.

ETA: if you're gonna turn it in, you're not liable for the difference. Your residual is in your lease, which is legal contract..... And is also the reason the lessee puts gap insurance in the lease.

View Quote

Lemme guess, car salesman, right?

Posted: 4/25/2017 3:29:02 PM EDT

[#37]

Quote History

Quoted:
Yep, renting and fleasing never makes sense.

View Quote View All Quotes

View All Quotes

Quote History

Quoted:

Quoted:
renters are weird.

Yep, renting and fleasing never makes sense.

Leasing cars up here makes a certain kind of sense in that you've traded off the car just before or at the time it starts to rust out.

Posted: 4/25/2017 3:30:57 PM EDT

[#38]

Your predicament is one of the good reasons to lease, you wont be on the hook for the diminished value at the end of the lease as long as the damage was properly repaired. Turn in the keys and buy or lease again, no loss to you. Leasing can be a great way to drive a vehicle, ignore all of the naysayers. I ought to know, I'm a scumbag finance manager at a stealership, I sometimes lease vs buying and I have all of the insider info

Posted: 4/25/2017 3:31:22 PM EDT

[#39]

Quote History

Quoted:
Yeah, I don't think this went the way OP was thinking.

Here's my 2 cents. Whether you owned it or leased it, you would still be looking at the same additional damage for loss of value...

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No. I've handled probably over 250 car and truck leases and never had to pay DV. If you own it, then you pay it when you sell it. Leasing is less risky than buying.z

Posted: 4/25/2017 3:32:12 PM EDT

[#40]

Is there a potential upside?

Posted: 4/25/2017 3:32:51 PM EDT

[#41]

You should try the "driving a paid off car" option. If you think you are saving money by leasing, wait till you see how much you save by not paying at all! It also gives you lots of extra money for things like skiing, vacations, evenings on an exotic beach with drinks....You know, shit thats way more memorable than the latest new car as you drive to work.

Posted: 4/25/2017 3:34:20 PM EDT

[#42]

in before all the butthurt and triggering from the fatties that only fit in bench seats

Posted: 4/25/2017 3:44:59 PM EDT

[#43]

Quote History

Quoted:
I don't understand how people can afford leasing. I enjoy not having a payment. I'll go be poor somewhere else I guess.

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I'm not poor. Partly because I don't lease cars.

Posted: 4/25/2017 3:46:00 PM EDT

[#44]

Why do mew have to have new cars all the time? I mean if mew bought and kept driving it after it was paid off, mew could save a ton of money. Once mew get used to not having a car payment, it sucks having to pay one again, meaning mew are far more likely to save up a significant down payment or even save up to buy it outright next time around. Mew can do it OP!

meow

Posted: 4/25/2017 3:47:51 PM EDT

[#45]

Quote History

Quoted:
You should try the "driving a paid off car" option. If you think you are saving money by leasing, wait till you see how much you save by not paying at all! It also gives you lots of extra money for things like skiing, vacations, evenings on an exotic beach with drinks....You know, shit thats way more memorable than the latest new car as you drive to work.

View Quote

Therein lies the problem, most people can't stomach the thought of driving anything less than the latest/greatest. In some circles this is known as living beyond ones means.

Posted: 4/25/2017 3:48:00 PM EDT

[#46]

Op, it is not a downside to leasing. Your car would have depreciated because of the accidents if you had paid cashed or financed it.

Posted: 4/25/2017 3:53:39 PM EDT

[#47]

Quote History

Quoted:
You should try the "driving a paid off car" option. If you think you are saving money by leasing, wait till you see how much you save by not paying at all! It also gives you lots of extra money for things like skiing, vacations, evenings on an exotic beach with drinks....You know, shit thats way more memorable than the latest new car as you drive to work.

View Quote

That's only part of the formula. Used and older cars (past the 3 year mark) have No full warranty, so if it brakes, you pay for it. Plus Tire replacement,brakes,shocks, a/c, alignments,tune ups.... you'll not be paying for any of that on a proper lease, but you will on your paid for older car.

Posted: 4/25/2017 3:55:43 PM EDT

[#48]

I had an ins. agent tell me that the only way you will be made whole after an accident is w/ a PI suit.

Between the PI and DV suit you should be okay

Does it suck to operate this way? Absolutely but once again hate the game not the player.

Posted: 4/25/2017 3:56:56 PM EDT

[#49]

Quote History

Quoted:

That's only part of the formula. Used and older cars (past the 3 year mark) have No full warranty, so if it brakes, you pay for it. Plus Tire replacement,brakes,shocks, a/c, alignments,tune ups.... you'll not be paying for any of that on a proper lease, but you will on your paid for older car.

View Quote

Which will still be a fraction of endless monthly payments if you maintain a well built vehicle properly.

Posted: 4/25/2017 3:58:56 PM EDT

[#50]

Quote History

Quoted:
OP check your lease 99% of them have gap insurance built in.

As for the rest of the vast amount of stupid in some of these replies, not gonna waste my time.

ETA: if you're gonna turn it in, you're not liable for the difference. Your residual is in your lease, which is legal contract..... And is also the reason the lessee puts gap insurance in the lease.

View Quote

This. OP you should pay attention to this. This is the ADVANTAGE of leasing. If you bought the car you are on the hook for diminished value. When you lease the bank is on the hook, not you

[ARCHIVED THREAD] - There is ONE potential downside to car leasing (Page 1 of 4)

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