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Can I claim diminished value for a leased car?

I leased a car about 18 months ago, my car has around 9000 miles and a driver rear ended me while I was making a turn. The police officer cited the driver and his insurance company accepted the liability.

At this time the car is in body shop for repairs and I provided in writing that car has to be repaired in pre-loss condition.

Dealer said that if the car is repair to original condition I won't have to pay penalty when I turn my car in at end of the lease. I am wondering if I can claim diminished value for my leased car?

Do insurance company pay DV for leased car to lessee or lessor? if lessee get paid is it possible that lessor can ask the money to be given to them?

I believe my lease has GAP but I will double check it tonight.



The only person entitled to make a diminished value claim is the legal owner of the vehicle (the person who actually suffered such damage). The lessee is entitled to the that payment. If the insurance company pays the lessor by mistake, then the insurance company will try to recover that payment from the lessor.

If you are damaged by the drop on value (you had a penalty), then you could make a claim to have them pay for the penalty, but this would not be a diminished value claim, but a consequential damage claim arising of a breach of a contract created by the accident.

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Good Luck

Comments for Can I claim diminished value for a leased car?

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May 31, 2012
by: Anonymous

As far as the mercedes goes, you could have taken another 7500 off. All you did was buy the payments down.

Aug 19, 2011
Diminished Value for lease car
by: Jim W

My M350 Merced. has $13-14000 damage. Other party ins co. has assumed responsibility.I know D V payments are usually made to the lease co, when I am not liable for any penalty at end of lease. My question. When I negotiated the purchase price of M350 for lease, I was able to get about @2500 additional discount, off dealers best offer, plus an addit @2000 to Mercedes from a military organization of which I am a member that had a limited program. Am I entitled to any recovery of these extra dollars that I used to lower my cost, and establish a very attractive residual, as I planned to buy the car at lease end. Now I won't buy the car, and thus a new lease will not have those savings available. If I could have bought the car, I could have immediately sold it for a $5000 profit. Now this value is lost. Should ins co re-imburse me?

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