Leased Truck & accidents
11-16-2014, 09:38 PM
#1
Leased Truck & accidents
Had a lady blow through red light and hit my truck on the rear passenger wheel and rear door and cab. The damage didn't look to bad, but that's what scares me. The wheel had a whobble after, which makes me think there could be more to the damage. Now this truck is a lease vehicle with less thatn 6k miles. I've already filed a claim with the other driver's insurance company. I will take the truck directly to ford for all repairs as ford technically owns the vehicle.
Now my question is, i'm afraid this could hurt me some how at the end of the Lease. How will this effect me at the time of handing it in? also, i'm concerned if something is overlooked and gets worse down the road, i will be stuck with the repair bill even though it was due to the accident.
Is it possible to ask ford for new truck on Lease (meaning a swap out)? mine is a 2014 Limited.
Heard a few horror stories about ford and the games they play to hold the driver responsible. trying to prepare myself and make sure i do everything possible to get this truck back to brand new shape
input is greatly appreciated.
Now my question is, i'm afraid this could hurt me some how at the end of the Lease. How will this effect me at the time of handing it in? also, i'm concerned if something is overlooked and gets worse down the road, i will be stuck with the repair bill even though it was due to the accident.
Is it possible to ask ford for new truck on Lease (meaning a swap out)? mine is a 2014 Limited.
Heard a few horror stories about ford and the games they play to hold the driver responsible. trying to prepare myself and make sure i do everything possible to get this truck back to brand new shape
input is greatly appreciated.
11-17-2014, 08:57 AM
#2
That's why lease vehicles have higher insurance rates. The manufacture wants to make sure the vehicle is returned in a sellable condition. Make sure to take it to a qualified repair company that guarantees their work.
11-17-2014, 12:38 PM
#3
Senior Member
There are no "games", with Ford or otherwise ... at least not in any major sense.
You lease a vehicle. They prorate the value of the vehicle based on the mileage you choose for the lease, and the length of time you plan on driving it. That's how they come up with the payment amounts.
At the end of the lease, you bring the vehicle back, and it's assessed for value. At that time, your vehicle is either A) worth more than anticipated at the time you first leased it, B) worth exactly what they said it should be worth when the lease ends, or C) worth less than what they anticipated.
You are responsible for having any damage to the vehicle fixed appropriately while you are leasing it. If you do not have damaged repaired while leasing it, Ford will assess a value to fix it and charge you for it. Just like if you owned the vehicle, or were making payments to own it (as opposed to a lease), any damage is ultimately going to affect YOU ... even if the other insurance company or driver pays for the repairs. You'd be hard pressed to get a pay-out for "loss of residual value" because of the fact it's been in an accident. That's just life, it sux, it might seem unfair, but that's how it goes.
Back to my A, B, and C ... assuming you paid (or someone else paid) to have the vehicle repaired from an accident ... If you bring the vehicle back and it's worth more than originally anticipated, then you get that money towards a new purchase/lease. If it's spot-on (which basically never happens), then the lease ends as expected, and nobody owes anyone anything. C is the interesting scenario (to me, at least) ... assuming the vehicle is returned in an undamaged condition ... if the vehicle is worth less than anticipated, you do NOT owe Ford anything ... Ford (the lessee) eats it. That's the risk THEY take with the lease.
Bottom line ... at the time you turn in the vehicle at the end of the lease, unless there is damage that you failed to repair, you will not owe anything, and could possibly walk away with "credit" towards another vehicle, or even a check for the difference (since they are effectively buying the vehicle back from you when you turn it back in).
You lease a vehicle. They prorate the value of the vehicle based on the mileage you choose for the lease, and the length of time you plan on driving it. That's how they come up with the payment amounts.
At the end of the lease, you bring the vehicle back, and it's assessed for value. At that time, your vehicle is either A) worth more than anticipated at the time you first leased it, B) worth exactly what they said it should be worth when the lease ends, or C) worth less than what they anticipated.
You are responsible for having any damage to the vehicle fixed appropriately while you are leasing it. If you do not have damaged repaired while leasing it, Ford will assess a value to fix it and charge you for it. Just like if you owned the vehicle, or were making payments to own it (as opposed to a lease), any damage is ultimately going to affect YOU ... even if the other insurance company or driver pays for the repairs. You'd be hard pressed to get a pay-out for "loss of residual value" because of the fact it's been in an accident. That's just life, it sux, it might seem unfair, but that's how it goes.
Back to my A, B, and C ... assuming you paid (or someone else paid) to have the vehicle repaired from an accident ... If you bring the vehicle back and it's worth more than originally anticipated, then you get that money towards a new purchase/lease. If it's spot-on (which basically never happens), then the lease ends as expected, and nobody owes anyone anything. C is the interesting scenario (to me, at least) ... assuming the vehicle is returned in an undamaged condition ... if the vehicle is worth less than anticipated, you do NOT owe Ford anything ... Ford (the lessee) eats it. That's the risk THEY take with the lease.
Bottom line ... at the time you turn in the vehicle at the end of the lease, unless there is damage that you failed to repair, you will not owe anything, and could possibly walk away with "credit" towards another vehicle, or even a check for the difference (since they are effectively buying the vehicle back from you when you turn it back in).
11-17-2014, 01:35 PM
#4
As long as you have repairs done to Ford's acceptable standards (so, let a Ford certified collision center fix it) you will not be charged for the accident at lease-end.
(Your truck will be subject to an inspection at lease-end for any over-mileage, damage or excess wear & tear)
The residual value on your lease contract, is what your truck is worth at lease end. If your truck is in acceptable condition at lease-end, you turn it in with no additional charges. Normally, there is a "disposition fee" that you'll be charged if you do not buy or lease another Ford at lease-end. I have not leased a Ford, so I'm not sure about this, but most manufacturers have this fee. Check your lease contract. It will be waived if you continue being a Ford customer.
You do not get any credit back from Ford at lease-end, even if your truck is worth more than the residual amount. This only happens if you are buying or leasing another vehicle, and the DEALER (not necessarily a Ford dealer) appraises your truck, and offers you more than your residual/payoff amount with Ford. In this case, you TRADE in your lease to the dealer, and the dealer buys it from Ford. Any positive or negative equity from trading in your lease is rolled into the new vehicle deal.
(Your truck will be subject to an inspection at lease-end for any over-mileage, damage or excess wear & tear)
The residual value on your lease contract, is what your truck is worth at lease end. If your truck is in acceptable condition at lease-end, you turn it in with no additional charges. Normally, there is a "disposition fee" that you'll be charged if you do not buy or lease another Ford at lease-end. I have not leased a Ford, so I'm not sure about this, but most manufacturers have this fee. Check your lease contract. It will be waived if you continue being a Ford customer.
You do not get any credit back from Ford at lease-end, even if your truck is worth more than the residual amount. This only happens if you are buying or leasing another vehicle, and the DEALER (not necessarily a Ford dealer) appraises your truck, and offers you more than your residual/payoff amount with Ford. In this case, you TRADE in your lease to the dealer, and the dealer buys it from Ford. Any positive or negative equity from trading in your lease is rolled into the new vehicle deal.
11-17-2014, 06:03 PM
#5
i took it into the body shop the dealer i got it from uses for repairs. Everything will be brought back to the shape it was. i should know in the next 72 hours if the damage is more than just cosmetic.
thanks for your inputs guys. That's what i assumed would happen. I've leased plenty of vehicles, just never been in an accident with one. Learning experience to say the least.
thanks for your inputs guys. That's what i assumed would happen. I've leased plenty of vehicles, just never been in an accident with one. Learning experience to say the least.
11-18-2014, 06:05 AM
#6
Wiggums and Cosmos sound like they nailed it.
Truth be told, any vehicle in an accident needs to be sure it uses Ford OEM certified replacement parts. There's a reason for that, and it's the same reason I refuse to buy ANY VEHICLE if it's been in an accident. Simply put, you have no idea what grade replacement body panels were used, and alot of aftermarket junk that's not safe gets used by hack shops that's been approved by cheap insurance companies. So to me, this reduces the value of any vehicle in an accident without confirmation of certified OEM parts.
Here's the video.
Truth be told, any vehicle in an accident needs to be sure it uses Ford OEM certified replacement parts. There's a reason for that, and it's the same reason I refuse to buy ANY VEHICLE if it's been in an accident. Simply put, you have no idea what grade replacement body panels were used, and alot of aftermarket junk that's not safe gets used by hack shops that's been approved by cheap insurance companies. So to me, this reduces the value of any vehicle in an accident without confirmation of certified OEM parts.
Here's the video.