so i wrecked my car in the wet the other day. body shop says they recommend totalling is as they have already found $14k of damage w/o even working on it. My question is, i leased my car. i would have turned it back in on Oct 1, 2006. i believe the payoff was $17k, the kbb retail value is $15500, my deductible is $500. what happens? do i have to pay it off? will i just have the totalled payment go to the finance company and be done?

any help is appreciated.

thanks
Dave

 

you will have to pay the buyout plus an early termination fee. if you have GAP insurance, that will make up the difference between insurance check and payment to the leasing company, otherwise it will come out of your pocket

 

If you have gap insurance you're fine - check your lease papers and insurance policy.

If not, you are on the hook for difference between the insurance settlement and loan payoff. Some adjusters won't go by KBB so you may win in that situation.

 

I thought GAP was required for a lease.

 

most of the time it is, but considering his buyout is 17k on an 00, It may not be through a dealer or referral, so who knows.

 

If your lease is through American Honda you will have GAP insurance. American Honda includes GAP insurance in all of their leases. You will still have to pay your insurance deductible though.

 

so for him it may be just 500 bones to wreck an s?

 

And a mark on his insurance.

 

And no S!