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Discussion Starter #1
Well, last night I was at work and after about an hour in to shift a fellow officer (co-worker) comes to me and says that he backed in to my Accord. At first I think he is just screwing with me because they all know how OCD I am about my car. Then after realizing that he is not joking, we walk out to the parking lot and he shows me the damage. Upon initial inspection, I think most of it can be buffed out. But as I look closer I see that the front chin spoiler is broke where the screws are mounting it to the bumper, the front wheel is scratched pretty badly and the front fender is creased and scratched. He apologized profusely and gave me his insurance information. He told me to call his insurance company in the morning so I could get it fixed.

Based on the pictures, does it look like the wheel can be saved and will the fender need replacing? I assume with the fender being creased and the location of the damage it will need to be. I am going to call when they open and get some estimates some time today or tomorrow. Is the any advice you guys can provide on dealing with his insurance company? Any help would be greatly appreciated.
 

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Not to be short or sarcastic, but call them and say “fix my car,” and make sure it is done to like original condition. If that’s your local dealer’s recommended body shop, or a high quality body shop in your area, that is your choice. You should also get a replacement car while yours is in. Don’t let an insurance company try to nickel and dime you, and don’t take a second rate job. That’s what insurance is for, but the try to save a buck.
 

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Also, look into filing a diminished value claim once the car is repaired. His insurance company should compensate you for the difference in what the car is worth pre and post accident.
 

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Discussion Starter #4
Will do. Thank you. How will the diminished value claim work with my car since it is a lease? I am planning on buying at the end of the lease. This my first time leasing a car.
 

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How will the diminished value claim work with my car since it is a lease?
I cannot advise on this as I do not lease cars. Two of my coworkers just had success in receiving quite a bit for diminished value claims, but they both own their cars as well.
 

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Will do. Thank you. How will the diminished value claim work with my car since it is a lease? I am planning on buying at the end of the lease. This my first time leasing a car.
There is an article here that goes like this: You can get money for a diminished value on a leased car in concept, but its not really called a “diminished value claim”. You technically don’t own the car. When your car gets damaged in an accident and your car is leased, rather than purchased, it is considered an “out of pocket property damage leasehold loss”.

I understand from this article that "diminished value" situation is real, and the dealer (or rather the finance company) will see to it that the account is made whole. Your situation is less complicated; the dealer will not inspect the car and count the scratches as you will buy the car.

Feel free to pocket the insurance money and buff it out. Keep the photos as evidence that the damage was superficial if the insurance claim shows up on VIN report when you are selling the car.
 

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If it's a lease there's no reason to file a dimished value claim. At the end of the lease assuming it was all fixed back to spec you won't have to come out of pocket for anything.
 

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Discussion Starter #9
If it's a lease there's no reason to file a dimished value claim. At the end of the lease assuming it was all fixed back to spec you won't have to come out of pocket for anything.
If I plan on buying the car anyway, the leasing company will ding me with any out of pocket expenses correct? Will this effect what I know the residual value will be at the end of my lease term? Should I call my leasing company and inform them of the situation? I am very meticulous when it comes to my car. Especially since this is my first brand new car.
 

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This is strictly cosmetic. Unless there's some serious (structural) damage, you're not going to get anywhere with a diminished value claim. Being cosmetic only, there won't be much diminished value, if any.
 

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If I plan on buying the car anyway, the leasing company will ding me with any out of pocket expenses correct?
No, they will just sell you the car for its residual value, it will become your car in whatever condition it will be at that time.

Will this effect what I know the residual value will be at the end of my lease term?
No, the residual value is the projected future value of a same model car that is x years old with y miles on it, where x is your lease term, and y is the mileage allowance. Residual value is typically determined and locked in the contract before the car is offered for lease. Your lease payments cover the new price of the car - estimated future used value of the car + interest + dealer's trouble filling out the paperwork with American Honda Finance Corp + AHFC fees + whatever else they can throw at you.
 

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ChoppednTubbed
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If I plan on buying the car anyway, the leasing company will ding me with any out of pocket expenses correct? Will this effect what I know the residual value will be at the end of my lease term? Should I call my leasing company and inform them of the situation? I am very meticulous when it comes to my car. Especially since this is my first brand new car.
It's been a long time since I leased a car. But, isn't the post lease purchase price amount in he lease contract?
 

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Discussion Starter #14
It's been a long time since I leased a car. But, isn't the post lease purchase price amount in he lease contract?
That was my understanding. I opted for the 15k a year lease but I dont think I am going to put that many miles on it a year. Last year I only put a bit over 11k on it. They are expecting that car to have about 45k on I at the end but I'm not sure if I will even have 36k on the odo. In essence I'd be giving a car back with equity. I would assume that would help me get a better loan on the car and the residual value being lower than what the car books for.
 

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ChoppednTubbed
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That was my understanding. I opted for the 15k a year lease but I dont think I am going to put that many miles on it a year. Last year I only put a bit over 11k on it. They are expecting that car to have about 45k on I at the end but I'm not sure if I will even have 36k on the odo. In essence I'd be giving a car back with equity. I would assume that would help me get a better loan on the car and the residual value being lower than what the car books for.
I here you. And, I know where your coming from. With that said, everything is neogtiable, as you point out about getting a better deal. Good luck.
 
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