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So I'm currently leasing a 2017 Honda Civic. Got it not even a year and a half ago in late October 2017. Well two weeks ago I got rear ended. Damage wasn't that bad all things considered, already got the car back, but I know that my car's value will be diminished regardless. I've tried looking up some advice but nothing was super clear. I know some have said that it can be a good thing that I'm leasing. I return the car at the end of the lease and let the dealership deal with it. However, I love my car and fully planned on buying it at the end of the lease. Plus, I will more than likely be over the allotted mileage which means paying a penalty (which wouldn't be a big deal if I purchase).
I've never leased before but evidently I can try to negotiate the purchase price at the end of term. Would it be possible to argue that the purchase price should be reduced since the car's value has been reduced? Has anyone here done that before? If so, how can I prove how much the car's value has gone down? Any good sources for that?
I had a relative go through this recently. The insurance gave a number based on something like - start with the current undamaged value (I've no clue if they use retail, trade-in or what). Then take 10% of that. If there is no frame/structural damage, you would cut that in 1/2 then.
So, let's say your car is 20K undamaged. 10% is 2K, and 50% of that (assuming no frame damage) is 1K.
I think the insurance company asked them for a number first. Then responded with theirs. My relative then countered and the insurance company went a bit higher.
According to your theory if you are planning to buy a car at the end of a lease then you should completely trash it so that you can get a better deal on it?
I'm not sure it works that way, but hey what do I know. I guess it's worth a shot!
I'm going to add to the Op's question. What happens if the other guy doesn't have insurance, or agrees to pay for repairs? Do you demand an amount from diminished value from them? What if that person is broke, or has little money? Do you get it from your own insurance?
Since you’re leasing and the vehicle is all fixed you just turned it in at end of lease. If you want to purchase the vehicle you have to pay what is agreed to at time of you taking position and sighing the lease contract. You can’t take anything off the price you agreed to at time of you signing the lease contract. It’s not Honda responsibility to lower the buyout amount just because you had a accident. Welcome to the real world. You can’t negotiate a different price at the end of the lease you signed a contract to pay x amount sorry your stuck at that price.
According to your theory if you are planning to buy a car at the end of a lease then you should completely trash it so that you can get a better deal on it?
I'm not sure it works that way, but hey what do I know. I guess it's worth a shot!
Who in their right mind would intentionally damage their car for a lower price? They'll always have a reduced value, and that's after paying for repairs (unless they want to drive a beat up car).
Besides, that isn't even my situation, I didn't want to get rear ended. It happened, nothing I could do. I wasn't somehow trying to get a lower price; I would have rather this never happened. I'm just trying to salvage the situation.
Quote:
Originally Posted by macroy
I had a relative go through this recently. The insurance gave a number based on something like - start with the current undamaged value (I've no clue if they use retail, trade-in or what). Then take 10% of that. If there is no frame/structural damage, you would cut that in 1/2 then.
So, let's say your car is 20K undamaged. 10% is 2K, and 50% of that (assuming no frame damage) is 1K.
I think the insurance company asked them for a number first. Then responded with theirs. My relative then countered and the insurance company went a bit higher.
Thank you. This is along the lines of what I'm looking for. So should I work directly with the insurance company (both of us have the same one) to find out the value?
Quote:
Originally Posted by dkf747
I'm going to add to the Op's question. What happens if the other guy doesn't have insurance, or agrees to pay for repairs? Do you demand an amount from diminished value from them? What if that person is broke, or has little money? Do you get it from your own insurance?
I think I read where someone can make a claim for diminished value. But I don't know if that works for uninsured motorists.
Quote:
Originally Posted by easy62
Since you’re leasing and the vehicle is all fixed you just turned it in at end of lease. If you want to purchase the vehicle you have to pay what is agreed to at time of you taking position and sighing the lease contract. You can’t take anything off the price you agreed to at time of you signing the lease contract. It’s not Honda responsibility to lower the buyout amount just because you had a accident. Welcome to the real world. You can’t negotiate a different price at the end of the lease you signed a contract to pay x amount sorry your stuck at that price.
Well this website says you can negotiate at end of lease so I don't know what you're talking about. Besides, if I don't buy it, then the next potential owner of the car would be able to pull the Carfax and see that it received damage and isn't worth as much so they'd offer less. Regardless, Honda isn't gonna get the full amount they want. Why would you think they can turn it around for full price when in 2019, anyone could pull a Carfax on their phone while at the office negotiating?
Who in their right mind would intentionally damage their car for a lower price? They'll always have a reduced value, and that's after paying for repairs (unless they want to drive a beat up car).
Besides, that isn't even my situation, I didn't want to get rear ended. It happened, nothing I could do. I wasn't somehow trying to get a lower price; I would have rather this never happened. I'm just trying to salvage the situation.
Thank you. This is along the lines of what I'm looking for. So should I work directly with the insurance company (both of us have the same one) to find out the value?
I think I read where someone can make a claim for diminished value. But I don't know if that works for uninsured motorists.
Well this website says you can negotiate at end of lease so I don't know what you're talking about. Besides, if I don't buy it, then the next potential owner of the car would be able to pull the Carfax and see that it received damage and isn't worth as much so they'd offer less. Regardless, Honda isn't gonna get the full amount they want. Why would you think they can turn it around for full price when in 2019, anyone could pull a Carfax on their phone while at the office negotiating?
I was at the dealer today to get oil changed i talked to my salesman about this exact question he looked at me and laughed. He said you got into a accident and you want Honda to negotiate a cheaper price because you got into a accident, he said good luck with that. Face it you want Honda to give you a cheaper buyout on a accident you had and you want Honda to eat the difference. Lol lol
Who in their right mind would intentionally damage their car for a lower price? They'll always have a reduced value, and that's after paying for repairs (unless they want to drive a beat up car).
Besides, that isn't even my situation, I didn't want to get rear ended. It happened, nothing I could do. I wasn't somehow trying to get a lower price; I would have rather this never happened. I'm just trying to salvage the situation.
Thank you. This is along the lines of what I'm looking for. So should I work directly with the insurance company (both of us have the same one) to find out the value?
I think I read where someone can make a claim for diminished value. But I don't know if that works for uninsured motorists.
Well this website says you can negotiate at end of lease so I don't know what you're talking about. Besides, if I don't buy it, then the next potential owner of the car would be able to pull the Carfax and see that it received damage and isn't worth as much so they'd offer less. Regardless, Honda isn't gonna get the full amount they want. Why would you think they can turn it around for full price when in 2019, anyone could pull a Carfax on their phone while at the office negotiating?
That loan.com article is absolutely terrible. Whoever wrote that has no idea what they are talking about.
For starters, the dealer is not the Lessor, the finance company is. The dealer does not send the car to auction, the finance company does, etc. The finance company is the one who would be in position to release the car at lease-end for less than the buyout amount stated in your lease contract. (But that rarely happens...)
That loan.com article is absolutely terrible. Whoever wrote that has no idea what they are talking about.
For starters, the dealer is not the Lessor, the finance company is. The dealer does not send the car to auction, the finance company does, etc. The finance company is the one who would be in position to release the car at lease-end for less than the buyout amount stated in your lease contract. (But that rarely happens...)
You are correct when i turned in my Nissan Sentra when the lease ended Nissan finance who is the lender brought out their own inspector to look over the car not the Nissan dealer were i turned it in at. Then Nissan took the vehicle to a storage facility to be auctioned off. My wife was able to find out who bought the Sentra through the vin number that was on the old registration. Nissan finance is the one i would of delt with if i want to buy the car. My salesman said Nissan finance dose not waver from the original buyout price at the time i leased the Sentra. So if i wanted to buy the vehicle i would have to pay what the original contract stated. But i enjoy up leasing another vehicle. These finance companies are like Las Vegas they don’t like to loose money.
I was at the dealer today to get oil changed i talked to my salesman about this exact question he looked at me and laughed. He said you got into a accident and you want Honda to negotiate a cheaper price because you got into a accident, he said good luck with that. Face it you want Honda to give you a cheaper buyout on a accident you had and you want Honda to eat the difference. Lol lol
Quote:
"Loss of value after a major repair completed to a commercially acceptable standard is assumed by the lessor," Iny said.
(from here). Canadian article, but I doubt it's that different in the US.
Honda [Financial] already is gonna eat the difference.
Let's pretend I don't buy it at the end of lease. Then Honda has to sell a used car that's been in an accident - something anyone with internet access can find out and use to haggle a lower price. Which is exactly what I would do if shopping for a used car.
Quote:
Originally Posted by iamweasel
That loan.com article is absolutely terrible. Whoever wrote that has no idea what they are talking about.
For starters, the dealer is not the Lessor, the finance company is. The dealer does not send the car to auction, the finance company does, etc. The finance company is the one who would be in position to release the car at lease-end for less than the buyout amount stated in your lease contract. (But that rarely happens...)
That is correct. In my case, it's actually Honda Financial that is the lessor.
Anyway, I found another article to suggest it is possible:
Quote:
Many leasing companies are willing to negotiate a decreased buyout price due to the accident history, especially if they previously settled a diminished value claim. As long as you have the vehicle repaired to OEM specs before you turn it in, you may have leverage to buy it at lower than the contractual payoff price.
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