When you’re looking for a car but not looking to purchase one in the traditional way, it’s likely you’ll turn to leasing. When a buyer leases a car, they pay for the depreciation of the vehicle over the term of the lease. There are also lessor fees and interest rates tacked on to the total. Once the contract is up, the driver can return the vehicle, renew the lease, or buy the vehicle outright.
While there are a number of benefits to leasing a vehicle, including driving a newer vehicle, lower monthly payments, and not having to deal with vehicle repairs by yourself, you may run into issues if you end up in a car accident and try to seek diminished value.
If you’re in an accident in a leased vehicle, the initial steps you take are still the same. You’ll want to stay at the scene, call the police, and seek medical attention. The steps you take after, however, when you’re dealing with the insurance company and your lessor, could have an impact on your financial future. Let’s take a look at what you need to know about leased vehicles and diminished value after a wreck.