Originally Posted by Ninon2008

I must say you are absolutely wrong on this....

lets say I owe 19,000 (most leases have a payoff quote, you can buy the car outright at any time)
nd it is deemed worth 21,000 ........$2000 in equity

I get paid $21,000........since their is a loss payee (the lease co who is technically still owner)
they will be paid off first. they will get $19,000 of the $21,000

Once the car is paid off, NISSAN is DONE WITH ME. It is my car at that point.

the remaining $2000 (now that the "mortgagee" for all intents and purposes is paid)
will go to me....as I now own the car outright ($19,000 has been paid)

Insurance co doesnt care what is owed, they deem it worth an amount - and pay it -
to whoever needs to be paid first, and the rest would go to me.....

If I paid $1,000 a month on my lease, and only owed $10,000 - and they deem the car worth $20,000...
that remaining $10,000 would go to me......


if i was upside down on this lease, and dont have gap, the difference I pay is -

THE ACTUAL CASH VALUE of car vs WHAT IS OWED on car...

not salvage vs. what is owed.

Insurance company will pay the owner or the Lease Co ACTUAL CASH VALUE on almost all policies
Unless you have stated amount or Replacement cost value

I am not perfect, I could (small chance IMO) be wrong, but trust me on this one -
I work in Insurance.....not car insurance, property, but the concept of it is all the same,
I read the policy, I now how they work, and I look at this stuff all day LOL

Originally Posted by DavesZ#3

Wow. You have a total misunderstanding of how a lease works. They never owe YOU anything, you don't own the car, you have no equity in it, you're only borrowing it. You never put more into it than it's worth. The depreciation the day you drive it off the lot guarantees that nobody but the leasing company will come out ahead.

The residual ($19K) is what you could buy the car for at the end of the lease. It's not what you could buy it for today (with 1 yr left) and it's not what the value of the car is.

The wholesale value (what the insurance will pay) on a 2008 is around $14 to $18K for base to grand touring respectively. The lease company will probably want some portion of the remainder of your lease payments plus the residual plus a factor for it being a year younger (2 yr used vs 3 yr lease)than anticipated ($19K + X). I'm going to guess you or Gap insurance will owe around $10K to the leasing company.

This of course is all speculation without a lot more details. You're lucky if you have Gap insurance as you'll at most be out $1K deductible. Make sure you find out all the final numbers as I'm sure it will be an eye opener when you see what you would have had to come up with.

Originally Posted by Ninon2008

What do you think? I owe about 19,900 on it, its a 2008 w/ 28,000 miles.
Its def worth a bit over what I owe.

Originally Posted by porschett

Only if you request it or the leasing company requires it. I have an H2 on lease from GMAC. They didn't require it!