Written off lease car

M

montyracing2

At the Start
Joined
Apr 17, 2005
Messages
763
Location
Blackpool
Dear All

I wrote off my leased car in the ice, no one injured but car written off!
Any views.

What am I facing - costs?

I need a new car - can I lease another.

MR2
 
The insurance company will carry out a full investigation.

The procedure that follows usually goes something like this

An insurance assesor will estimate the value of your car pre-crash, lets say £10000. The insurance company then finds a scrap yard willing to take the car at salvage value. Say the salvage company offers £2000 to take the car. You will then be asked to make a decision between these two:

1. Let the salvage company come lift the car, they pay you €2000, thats yours. The Insurance company then forwards the balance:

- £10000 ( the pre accident value ) less that €2000 salvage cheque.

So you get a second cheque from the insurance company for €8000. You end up with the €10000, but no car.

2. You decide to keep the car. Here the Insurance company takes the €2000 Salvage value from the pre accident value amount of €10000. You keep the car, the insurance company forwards you a cheque for €8000.

I hope you are alright after the accident
 
Granger I get the impression it was a rental car, not Mounty's own ?

If so he would be liable for the excess, I think Europcar charge a £650.00 excess , whilst Enterprise is £900.00, I hope you're not with Hertz as they are £1400.00

However the same company who you rent the car from, will be in touch straight away and put you in another car. They don't mind their cars being crashed as the excess they get is good money, as they are all covered by their insurance premiums anyway.

Chris
 
I thought that too Flame, though I should think Mounty would be a little suprised to read that hes crashed his car... ;)

All you should be liable for (to my mind!) is the excess Monty - they cant sting you for anything else, surely??!!!

Glad you are ok :)
 
The arrangement was a type of lease to ownership deal.

Last September I took ownership of a car worth £12,000 which was predicted to be worth £7,000 after two years.

Over two years the monthly charge covered personal insurance for one year, £5,000 value loss, HP charges, tax etc, around £200 a month. At the end of two years I either pay £7,000 or hand the keys back, hmmmm - I will have the keys but not much else.

Unfortunately, with the car written off the agency will still want its £12,000 back. An offer from the insurance people of £7,000 plus scrappage value, will leave them potentially £4000 out of pocket, an amount I’m responsible for.
Now here is the important message foe anyone taking out this kind of deal, there is GAP insurance which covers any shortfall in the case of ‘write-off.’

Fortunately, I took out GAP insurance, so at a cost of £400, I’ve probably saved myself £3000 - £4000. Lucky, I rarely take out such insurance excess.

I still need another car, anyone know if leasing agencies are generous or stubborn when I approach them again.

MR2
 
Back
Top