maTTalms

My mother was in an accident today in NS, sounds like her 2005 Matrix is likely totalled, but thankfully she is okay. The car is leased, and she is halfway through her four year lease. She was wondering (and I don't know the answer) - how does the accident work with a leased car? I'm sure the insurance covers the cost, but does she go back and re-lease another car? Do they give her a different car and let her finish the two years of her lease? If it's written off, does she just walk away from the remaining term?

Any advice is appreciated, thanks in advance. Thankfully we haven't had to deal with it before, and I don't lease my cars so I really don't have any idea how it works.

matt

afretes

She can then get whatever car she wants (Audi) and it is a totally new lease. Also, she should find out if she has replacement coverage, which will sort of cover all the payments that she made on her Matrix, basically, she can make money.

maTTalms

Thanks Alex, I really appreciate that!

Reifle

^^^^^ What he said and usually full replacement is within the first 2 yrs.

Ironside

When my dad's car was stolen, they essentially just terminated the lease. However, they said that the only reason he did not have to pay anything was that he had gap insurance. Otherwise because the insurance payout was $3,000 less than the cost to buy out the lease, he would have been responsible for paying that difference if he hadn't had gap insurance. This always struck me as odd...

afretes

As far as I know, all Audi leases have to have gap insurance.

Ironside

Apparently the lease only had gap insurance for the first year...luckily his car was stolen at 11 months. And he did exactly what you suggested...bought an Audi and has never gone back!