One of the most asked questions we get is: “How come you don’t determine the diminished value of my vehicle if it is leased?
Well, there are two answers for this question, the long and the short.
The short answer on a leased vehicle is:
We are unable to review Diminished Value claims for leased vehicles, because the company holding the lease is considered the owner and would file the diminished value claim.
So because you don’t technically own the vehicle the resulting loss is suffered by the owner, not you the leasee.
The long and technical ‘legalese’answer is:
This makes sense, in that if at any time you don’t live up to the terms of the lease, the company just repossesses the car, so obliviously the rights to any reduced value in the vehicle would go to the owner .
So when are you entitled to collect the diminished value on a leased vehicle?
If your lease was over and you purchased the car from the Leasing Company then, only damage occurred after the purchase of the leased vehicle would give you the rights to Diminished Value.
The key is all damaged that happened AFTER you purchased the vehicle is eligible for a diminished value.
Using Diminished Value to Adjust your Leased Vehicle Buy-out
This brings up an interesting point, that, if you’re buying out your leased vehicle after the end of your lease term, and your vehicle had been in an accident, make sure your pay the vehicle at the diminished value, not the value it would have been if it was not in an accident. If the lease company is not taking into account the diminished value of the vehicle, walk away, you don’t need to pay full value for a vehicle that obviously is worth less than a vehicle that wasn’t in an accident. Wreckcheck can help in that instance.
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Want to get started on your Diminished Value Claim – it’s easy, give it try here