Leased Nissan Leaf had a total loss - how to negotiate with insurance

My 4 month old 2016 Nissan Leaf SV was unfortunately badly damaged in an accident where I was clearly at fault. My insurance has estimated the damages to be high and declared that it would be a total loss. This is on a 3 year lease from NMAC.

Insurance has quoted me an assessed value which is almost my payoff balance on the lease. However, I had also made a cash down payment of $2,500 at the time of leasing. NMAC only cares about getting paid the payoff amount.

How can I negotiate with insurance to pay me (at-least part of) the downpayment I had made at the time of leasing? I find it hard to believe that all that value has been depreciated in just 4 months. I also understand that insurance will want to make a very conservative estimate to make the minimum payout.

Should I get my own fair value estimate e.g. from KBB or Edmunds, which might be higher? Will that be acceptable by insurance?

Also, which kind of estimate will apply to me -- trade-in value, private-party sale or certified pre-own price from dealer. KBB/Edmunds have several price points estimate based on which one I choose

Wow, it is terrible that your car so quickly became "under water"... You should check to see if you signed for that Gap insurance that you are not responsible if the car is worth less than you paid in payments... Otherwise, I think that the driver is responsible for the difference in values..

Nissan self-insures for gap coverage, and you will lose the down payment. This is why some people go with zero down leases - to avoid losing the down payment in this situation. I'm sorry for your bad luck, but it is unlikely you will get anything back. I suggest a zero down lease next time, or one with no more of a down payment than you are willing to risk losing, to get a better offer. I suggest $1000.

Cars loose 20% as soon as u leave dealership. So sorry to say, but u wont get anything from the downpayment

+1 on what Leftie said. I always recommend $0 down on a lease.

I was not at fault when my 2001 Grand Caravan AWD was hit. A contractor for the insurance company found a couple `01 Grand Caravans advertised in the AutoTrader or other advertisements. They were being offered for about $1800. That is what I got. I explained that KBB and Edmunds said it was about double that. I was told that isn't how these things work. I checked a bit more, and eventually took the $1800.
BTW - note this isn't much different than trying to get a decent price from a new car dealer on a trade in, "If KBB or Edmunds is willing to pay you that much, sell it to them. We will send it to auction and this is all we will give you."

shop2order said:

I find it hard to believe that all that value has been depreciated in just 4 months.

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Your car automatically depreciates $7500 the minute you sign the paperwork, because the Federal tax credit is not available to used EV's. If your state/municipality offers cash incentives for new EV's, you can further deduct the same amount. And that's before you take into account the depreciation curve for any new car. You previously said you're in the San Francisco Bay area, so add the $2500 state rebate to that amount. If you live in the San Joaquin AQMD district, IIRC they offered an additional $2500 as well (not sure if they still do).

I don't have my lease paperwork handy, but I remember language on the back that clearly states NMAC will simply cancel the lease once the car is deemed an insurance write off. That's why, as mentioned above, you put as little down as possible on a lease.

The loss of the $2500 paid 4 months ago hurts, but if it helps I think that is the low end of what people usually find when involved in accidents of new cars leading to a total loss, and I don't think that includes the deductible. It seems worthwhile to point out that Nissan may have lost quite a bit more; all you know is that Nissan canceled your lease obligation and is not coming after you for any shortfall.

As mentioned, two common ways to avoid this situation are
1. Gap insurance
2. A lease with a small down payment and no liability to cover the leasing company's losses in event of a total loss.

In your shoes, I would be happy I was in one piece and crossing my fingers that my insurance rates do not skyrocket.

I don't think additional gap insurance will cover his $2500 loss. It's only designed for any shortfalls between the insurance payout and what you actually owe, and for NMAC leases the latter is $0 in the case of total loss claims as long as you followed the contract.

I'm bewildered by the economics of the whole lease/insurance/wreck auction merry-go-round. Are you able to share the approx numbers with us? What is the payoff balance on the lease? What is the approx insurance payout offer?
I've seen wrecks go for $4k+ at auctions (when you include all the fees & charges) which seems incredible with used car lot Leafs going for just $7k.

My lease from NMAC covers Gap insurance.

My insurance estimate of assessed value is higher than my lease payoff amount. This is because I made a downpayment of $2,500 at the time of leasing. NMAC told me that insurance should pay it the assessed value and I need to pay them the deductible (I was at fault in this accident).
Looks like NMAC will benefit substantially.

Is it possible that I direct my insurance to pay me the assessed value (minus deductible) and then I can payoff NMAC the payoff amount? Has anybody done this?

I am reading my lease docs and my impression is that in a total loss scenario, NMAC gets to keep all excess payments. Nothing will be refunded to me. Is this true?

shop2order said:

My lease from NMAC covers Gap insurance.

My insurance estimate of assessed value is higher than my lease payoff amount. This is because I made a downpayment of $2,500 at the time of leasing. NMAC told me that insurance should pay it the assessed value and I need to pay them the deductible (I was at fault in this accident).
Looks like NMAC will benefit substantially.

Is it possible that I direct my insurance to pay me the assessed value (minus deductible) and then I can payoff NMAC the payoff amount? Has anybody done this?

I am reading my lease docs and my impression is that in a total loss scenario, NMAC gets to keep all excess payments. Nothing will be refunded to me. Is this true?

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You will need to talk to your insurance agent. The issue here is that NMAC owns the car and you are paying a monthly fee for the privilege of driving it. The lease payments are to repay the owner for the depreciation suffered during the time you are driving the car. You have no equity in the car, just the opportunity to purchase it for the residual value at the end of the lease term. You took a gamble and provided an upfront payment to lower your monthly payments over the term of the lease.

As it stands, you totaled the vehicle and owe NMAC a car. They are willing to cancel the remainder of the lease contract and accept the check from the insurance company in lieu of the car you owe them. If you want to keep your $2500, tell NMAC you want them to use the insurance check to replace the car with another one and continue the lease for the remainder of the term. You will need to read the lease contract and see what it states can, or will, be done for such situations.