Car Damaged while at Dealership for Servicing by Staff while in their Possession (lease, insurance)
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My question involves a consumer law issue in the State of: California.
I leased a brand new 2013 Audi 2 weeks ago, and had an appointment to bring it in to have additions installed (SkyLink and paint treatment) for a later date. I dropped off my car this past Friday morning with it having shy of 700 miles on it. During the course of the day, I got a call back from the dealership and I as informed an employee (or subcontractor company who was working on my car on behalf of the dealership) had hit my brand new car with their car, of course when it was all in their possession. It is not totally wrecked but rather a front left side fender dented and the front left tyre rim is scratched.
They acknowledged it was their responsibility and that they would fix it and not be on my insurance and not my responsibility as they took responsibility of the issue, however, I don't want my car anymore as the value of my car has dropped even more, and of course it now has bad "juju" on it. I simply do not want to pay for the full lease value of a diminished or now lessened value of my car.
Work to repair has not yet commenced, and if they do complete before I agree to anything, is it fair for me to refuse to accept possession of my car until I agree to the resolve for this matter? I am asking as if I had driven my car onto their show lot and I hit one of their brand new cars for sale, then I would be responsible to repair their new car (and of course mine), and because I am in the State of California, is it true that they MUST have a disclosure that their car for sale was involved in an accident and what was done, and amount of damage repaired, of course which would impact the sale price that car? That diminished price is separate from the "drive-off" devaluation of a car once purchased. So if their car were advertised let's say for $50,000.00 and I hit it, and the damage cost $5k, would this mean the car would be revalued less by $5k? Of course it's whatever the purchaser is willing to pay, but in theory is the car worth $45k (before taxes and drive off devaluation)? Can I reasonably ask for that type of diminished value credit or compensation towards my lease?
Even though I already signed the lease paperwork for the car 2 weeks ago and lease payments contract in place, the diminished value of my car should be considered as it really still is a brand new car with less than 700 miles, and that diminished amount is what they need to consider, on top of repairing my car? So, if they won't replace my car for an even exchange for a car, what can I do?
Can I legally demand they give me a cheque for the diminished amount or make payments on my behalf until that amount is reached? I don't want to keep my car now as it's worth less than when I brought it in to the dealership. What are my rights and my entitlements?
What's your take on this and what is reasonable to ask for compensation? It's obviously not a Lemon Law case but are there laws in place to protect consumers, like "buyer's remorse" or other recourse I can do to cancel / nullify the agreement and take possession of another without cost and headache to me?
Right now the car is still in their shop and I told them NOT to begin repairs until we discuss outcome, and they've given me a loaner car to use. And if they complete repairs before I agree, can I refuse to accept the car without breaking any laws or getting sued? What Can I do? Please advise.
If the repairs are done by a competent shop and do not cost more than 75% of the residual value (salvage title), then there will be no record of the accident, so I am not sure what has you worried.
Front left side fender damaged and trim scratched? This doesn't sound like it rises to the level of a salvage title. Now if the car was hit by someone doing 30+ and the airbags deployed and the frame was bent, then you would have a case.
It sounds more to me like you want out of the lease?
It's a lease. You don't Own squat, you're just renting it. The "value" is of no concern to you because it's not your property.
Like Suncc49, it seems to me as if you're just trying to get out the lease for no real reason.
If you're serious about that, you ought to be talking with someone who Knows local law... not trolling the opinion of some online forum full of yahoos who could be making up something to say just for the fun of watching people argue over contradictions. I'm sure there's a way out, actually I *know* there's a way out.. pay off the lease and walk away from the car, but only someone with specialized knowledge will be able to help. You're going to Pay for that knowledge, and they may not offer you an "out" you're willing to accept (like my example above, paying off the lease in full), but you'll know for sure what your options are.
I can see where the OP is coming from. Car has 700 miles, and their paying a premium to lease a brand new luxury car.
Now their stuck with a brand new car that was involved in an accident for the next 24-36 months, and that is not fair since the dealership had possession of the car during the accident.
I would want them to trade my out to the exact same car, minus the damage.
Read, and understand your lease. It is going to be all spelled out in there. I don't think you are going to have a "way out" in this case. But, I don't think you will have anything to worry about either.
The dealership may be just taking care of it without insurance. Stuff like this happens all the time. Even new cars that haven't been sold come damaged, other cars bump in to them, etc, but they are fixed and sold as new.
If you are looking for a way out, thinking of refusing work, worried about getting sued, get a lawyer. The dealership/bank have some pretty good ones that draw up those leases.
It's a lease. You don't Own squat, you're just renting it. The "value" is of no concern to you because it's not your property.
Like Suncc49, it seems to me as if you're just trying to get out the lease for no real reason.
If you're serious about that, you ought to be talking with someone who Knows local law... not trolling the opinion of some online forum full of yahoos who could be making up something to say just for the fun of watching people argue over contradictions. I'm sure there's a way out, actually I *know* there's a way out.. pay off the lease and walk away from the car, but only someone with specialized knowledge will be able to help. You're going to Pay for that knowledge, and they may not offer you an "out" you're willing to accept (like my example above, paying off the lease in full), but you'll know for sure what your options are.
Many people lease with the intent to buy after. If that is the case, then it certainly makes a difference in the vehicle value.
Personally, I would want that entire quarter panel that was damaged, replaced, as well as the rim and tire. No "bondo" or fixing that quarter panel by covering it up. Far too often than not, you see somewhat older cars and it's beyond obvious where it had been repainted, damaged etc. Be it fading faster or whatever the reasoning.
I may not agree about wanting the new car in it's entirety, but at the same time, I do see his point. However, accidents happen. I don't know if it's a whole lot different than someone backing into your car in a parking lot and that diminishing the value as well? You will get from their insurance the cost to fix it, and that's it. Diminished value, unfortunately, would have no play.
It wasn't your fault, it was something out of your control. Besides, once it's fixed, who else will ever know there was a dent unless you tell them?
The best thing about all of this is that it's a lease, so it's not your property to worry about the diminished value. That's one of the biggest advantages of leasing.
In three years, turn it in, and get another brand new one.
And don't go thinking the car has bad juju--it's only a machine. It's incapable of any juju whatsoever. The guy who backed into your car? He's the one with the bad juju.
Quote:
Originally Posted by blackhemi
Read, and understand your lease. It is going to be all spelled out in there. I don't think you are going to have a "way out" in this case. But, I don't think you will have anything to worry about either.
The dealership may be just taking care of it without insurance. Stuff like this happens all the time. Even new cars that haven't been sold come damaged, other cars bump in to them, etc, but they are fixed and sold as new.
If you are looking for a way out, thinking of refusing work, worried about getting sued, get a lawyer. The dealership/bank have some pretty good ones that draw up those leases.
And THIS! ^^^
Great point about new cars that get damaged and are repaired before they're sold. I worked for a dealership in 99-2000, and I had forgotten about that. Major damage (over a certain $ amount) had to be disclosed by law, but for the most part, it was 1-2 MPH scrapes and scratches from maneuvering the inventory in tight spaces. Body work almost never exceeded the disclosure limit.
We worked with a good body shop, of course. The cars always looked perfect when they were done, so I had no qualms about it. In fact, I had forgotten all about it until this post reminded me.
Last edited by Thegonagle; 06-24-2013 at 11:24 AM..
In Kalifornia, who knows. Here it's fairly easy- you don't own the car, you're just leasing it for specific amount of time. You have given no intent to ever buy the car, damaged or not. It's up to the dealership to fix the THEIR car however they want. It's up to you to buy the car out of lease or not. Remember, a lease is nothing more than a company letting you use their vehicle for a specific amount of time and mileage for a lower monthly fee than a vehicle for the same purchase price. You'd be in a different position if you had actually purchased the car but both are most likely going to take an attorney at your cost to get anything more than the car fixed. The question is, is it worth it to you?
Say the OP rear ended another car and it created a lot of damage. It was his fault. Say the damage was $10k, but did not create a salvage title and it could all be fixed...
Is there something in the lease indicating that he will have to pay for this diminished value of the car?
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