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General E46 Forum
This is the place to get answers, opinions and everything you need related to your E46 (sedan, coupe, convertible and wagon) BMW!

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Old 03-31-2004, 12:27 PM   #1
Cali6869
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What happens if you total a lease car?

Not quite sure what happens when one totals a leased car...Do you guys know? I heard from the dealer that all lease cars carry some kind of insurance (not sure what kind) that protects the credit company in case cars get totalled. So it doesnt come from your own insurance.
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Old 03-31-2004, 12:29 PM   #2
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The lease will generally provide gap coverage that will pay whatever your insurance won't.
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Old 03-31-2004, 12:33 PM   #3
Cali6869
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I always wondered, because.. What if someone wants to get off the lease, but they cant becuase they stuck... can they total the car to get off the lease without loosing much $?
BTW my car is paid off... it was just a discussion i had with a friend.
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Old 03-31-2004, 12:36 PM   #4
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Quote:
Originally Posted by Cali6869
Not quite sure what happens when one totals a leased car...Do you guys know? I heard from the dealer that all lease cars carry some kind of insurance (not sure what kind) that protects the credit company in case cars get totalled. So it doesnt come from your own insurance.
You can't go by anything we offer here. There are no standard terms in a lease -- you need to read your contract (hope you did when you leased it).

Generally...unless your lease agreement specifically holds you harmless, you are responsible to maintain the car so it retains it resale value (usualy specified as maximum miles, general care and maintenance, etc. ). You may or may not be responsible to cover any negative balances from an accident, depending upon whether the accident was your fault, whether your insurance covers replacement (or residual value), or whether the dealer carries a seaprate rider to cover catastrophic lossss from an accident.
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Old 03-31-2004, 12:36 PM   #5
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GAP insurance covers what is owed to leasing comp.
Thats why it is never smart to put $$$ on a Lease.
If u total the car soon after u lease it the insurance will only pay off what is owed to leasing comp u will never get ur money back for ur $$$ money down.
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Old 03-31-2004, 12:42 PM   #6
Cali6869
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Quote:
Originally Posted by s420merc
GAP insurance covers what is owed to leasing comp.
Thats why it is never smart to put $$$ on a Lease.
If u total the car soon after u lease it the insurance will only pay off what is owed to leasing comp u will never get ur money back for ur $$$ money down.
I think thats what I was talking abuot with my friend. He was thinking of leasing and we were discussing the pros and cons of leasing. This topic came up. So pretty much if you lease and you total the car... the gap insurance pays off the rest of the lease? and waht happens to the remainder of the value of the car? the drivers insurance?
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Old 03-31-2004, 01:30 PM   #7
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Quote:
Originally Posted by s420merc
GAP insurance covers what is owed to leasing comp.
Thats why it is never smart to put $$$ on a Lease.
If u total the car soon after u lease it the insurance will only pay off what is owed to leasing comp u will never get ur money back for ur $$$ money down.


Generally, you all basically have it. Someone's insurance company will pay off what is owed to the leasing comp (depending on fault). Gap insurance covers the difference.

You pretty much start over from zero as it is HIGHLY unlikely that you have any equity built up in your lease (if you do, you basically "bought" the thing already).
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Old 03-31-2004, 01:32 PM   #8
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Here in Ontario, you cannot get new vehicle without coverage. We also have "gap coverage" as you call it, meaning you get the full value of the car.
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