Hey everyone. I have some odd questions that maybe some of you could shed light on. I have a friend who recently got into an accident. The car was leased and he has about 2-3 more years on it. The damage was pretty bad and the frame was bent. All in all damages came out to be about $11,000. The accident was reported to the DMV. No police report was filed. It was his fault. No injuries happened.

My questions are:
1.) Does he have to disclose that the car was in an accident to the dealer?
2.) Does the dealer have the ability to find out that the car was in an accident and severely damaged?
3.) Will the dealer force him to buy the car from them at the end of the lease because of the damage?


Thank you all for the imput.

 

I'm not completely sure, but since he doesn't actually own the car I would imagine the dealer would have to find out, and the insurance company and/or DMV have probably already notified the dealer.

 

+1

the DMV/insurance company more than likely notified the dealer. the incident will go on the carfax report and the vehicle now has an ISO history, which the dealer will more than likely be aware of.

I don't see how they would make him buy the car but he would probably have to check his contract to make sure because any sort of clause like that would be in there...

 

Anything that occurs to the vehicle under the lease is your friend's responsibility. He doesn't have to notify anyone about anything that has occurred, unless of course an insurance company needs to be involved for a claim. The dealer is not a component of the equation. The bank or leasing company (lessor) whom your friend (the lessee) is contractually obligated to won't even know that the vehicle has been damaged. The leased vehicle need only be reviewed by a representative of the bank (the assessor) when the contract's termination date nears. Upon review, the car must be in a condition that satisfies the lessor's end-of-lease criteria (no dents, scrapes, good tread on tires, etc).

I've leased three vehicles (Hondas) with each lease's financing supported by a different bank. One was wrecked by a Honda dealership as a matter of fact. It didn't mean a damn thing to anyone but their insurance company LOL.

 

there is nothing in a lease contract that states if you wreck it beyond a certain damage limit that you have to buy it.

 

I was in the exact same situation with my G35 (except that it wasn't my fault).

My fear is that I will owe money when the lease expires, because although the car is still in great shape, you can see weld marks when you open the trunk. Will I be charged for excessive wear and tear?