I’m confused

[bradley5]

If you were leasing your car, and someone hit you and the insurance company deemed your car a total list do you have to pay the leasing company?

They said they’d give me a payout of what my car was worth but would I have to give it to the company that I was leasing my car with?

 

[ayenew]

@bradley5 The leasing company would need to be paid so you’re not left stuck paying on a car u no longer have. Once they are paid off with the insurance check you should be able to leave another vehicle like start over. If there is money left over once the leasing company is paid off that goes to you as the positive equity. But if you’re upside down on the loan then you would still need to pay that off.

 

[davelew86]

@bradley5 Yes. Your lease requires it. You don’t own the car.

 

[bradley5]

@davelew86 How would I go about getting a new car then? I haven’t even been able to work because of the damage to my car, so I don’t have any money. Will I just be left without anything?

 

[davelew86]

@bradley5 It’s possible you’ll get any difference between the payoff amount and the value. Or not.

This is one of the risks of leasing. Sorry.

 

[bradley5]

@davelew86 It’s alright! Thank you!

 

[former32%C2%B0mason]

@bradley5 You have to read your leasing contract to see if they would give you anything or if it all goes to them.

If you are left with nothing, it's just the same as it would be at the end of your lease. You were never paying towards anything or gaining equity. At the end of the lease you either have to secure financing (or cash) to buy a used car, or you just return it.

 

[bradley5]

@former32%C2%B0mason Thank you! That helped me understand it a bit better!