How does it work when Leased car is totaled?

[Tezla1]

My 2024 M3 highland refresh was slammed into left rear by speeding pickup truck driver- who is 100% at fault and we have video.

My 2024 m3 was leased and I put $0 down payment, but I did pay some $$ towards taxes, dealer fee , title tag etc.


Question: how does it work when leased car is totaled ? Do I just walk away?

Do I receive any compensation towards leasing a new car?

Does the damage look bad enough for it to be totaled?

Car is not driveable, as rear tire is scraping against the mangled car fenders/plastic


For those who have gone through this before, any tips?

 

[jmaddr]

Call both your insurance and financing company and let them know you've been in an accident. The insurance will pay the leasing company. If the value of the car is more than the payout, you get the extra. If it's less than the payout (and it might be the way Tesla's are depreciating), then leasing agreements "usually" have gap insurance are designed to pay the difference. If your agreement doesn't have gap insurance I couldn't tell you what happens, but I would assume you cover the difference.

 

[ucmndd]

That will almost certainly be repaired, not totaled.

 

[jjrandorin]

@jmaddr laid out how it worked in all the BMW leases I was in (gap insurance was mandatory on those). Not sure how Tesla structures its leases (if gap is mandatory or already built in). I suspect it would be, but thats what @Tezla1 would hope.

 

[terranx]

That will almost certainly be repaired, not totaled.

With how these things depreciate I have my doubts

 

[karkrazy]

Question: how does it work when leased car is totaled ? Do I just walk away?

Yes, most leases now are written where you should have no liability due after insurance payouts. Verify with your lease agreement.

Only the insurance companies can make a final determination if the vehicle is to be totaled. Whether you work thru the at-fault driver’s insurance or your own insurance (via subrogation), they will make the final call.

 

[Tezla1]

Leased a new 2024 Highland Model 3 recently , waited about 2 months to take delivery of the car.

Loved the car, all the new updated features are well worth it, vs my previous 2021 m3.

2 days ago, someone decided they wanted to shave 3 seconds off their afternoon commute and slam into the rear of my M3 with their pickup truck.
My wife was driving w my 7 year old in the car seat .

wife has some back pain, knee pain, neck pain, but doesn’t feel too major.
She went to doctor yesterday and got some pain meds and said to monitor for now.

The other guys insurance is Geico. After sending them the tesla cam footage, they accepted 100% fault.

Waiting to hear from Geico adjuster regarding whether it is repairable or totaled.

It’s now the weekend, so probably no answer till Monday/Tuesday.

Sigh…. This is the 3rd new car in a row, which has been hit by another driver within months of getting it, bad luck