QUESTION

My leased car was totaled at the other divers fault will I get my $5,000 deposit back?

Asked on Dec 03rd, 2012 on Personal Injury - Florida
More details to this question:
A tow truck hit my leased 2012 Lexus is250 last month. The car was parked on the street and there were no injuries. It's been declared totaled. I've only had the car for 6 months. The at-fault drivers insurance company has sent me a settlement offer for the cost of the car however I put a $5,000 down payment on the car. There is no mention of this in the settlement. Only that they will pay taxes and title on my new car. Am I entitled to the full $5,000 amount of the deposit I put down so that I can put it toward my new car? I haven't signed anything or cashed any checks yet.
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5 ANSWERS

Ronald A. Steinberg
Possibly. It depends on the diminution to the value of the car.
Answered on Dec 17th, 2012 at 3:56 AM

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Criminal Defense Attorney serving Anderson, SC at The David F. Stoddard Law Firm
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In an automobile accident, the insurance company must pay the fair market value of the vehicle at the time of the accident. In a case where you have purchased the vehicle, this is often less than what you owe on the vehicle because the vehicle depreciates the moment it is driven from the lot (it is now a used vehicle). If it is enough to pay off the loan, you often lose your down payment because of this depreciation. On the other hand, in theory, you should be able to purchase a used vehicle for what was owed on your new vehicle, because the used vehicle would have depreciated. As a practical matter, it doesn't work this way because interest rates are higher on a used vehicle loan and you usually must make another down payment. In the case of a leased vehicle, I'm not sure why the money would go to you. It seems to me that the money would go to the lessor of the vehicle. Hopefully, the settlement would be enough for the lessor to put you in a similar lease with no money down, but this might not be the case based on the same problem with a new purchase - you take the hit on the initial depreciation because they are responsible only for the Fair Market Value of the vehicle.
Answered on Dec 05th, 2012 at 9:48 PM

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Steven D. Dunnings
That is between you and the lease company.
Answered on Dec 05th, 2012 at 9:37 PM

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You are entitled to the value of the car, regardless of how much cash you have put into it. The insurance company should pay off whatever is owed on the car, and give you a check for the remainder, if any. If the car is worth less than what is owed, then you would be responsible for that difference. As it is a new car, the insurance company may decide to pay the entire cost of a new car, again, paying off whatever was owed on the totaled car and giving you the rest.
Answered on Dec 05th, 2012 at 7:59 PM

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Daniel P. Mitchell
In Florida, the measure of damages for the total loss (destruction) of personal property is ACV (actual cash value) as of the date of accident. Most likely, the check sent to you by the other driver's insurer was intended to represent ACV; therefore, it is unlikely they will be willing to pay more. You should check with them. If you feel that they are not offering you ACV, then your recourse would be to sue their insured (the other driver) to recover the amount you feel represents ACV. You might also check with your own insurer to see if they may have issued a valued policy, whereby a particular cash value for your vehicle is stated.
Answered on Dec 04th, 2012 at 2:38 PM

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