What Happens If You Wreck A Leased Car

If you wreck a leased car the lessor (the leasing company) is still liable for the car and its associated costs. You as the lessee are still responsible for making lease payments on the car. In the event that the car is totaled your insurance will pay out the car’s value to the lessor and you will be released from the lease agreement.

What is a lease?

A lease is a legal contract between a lessor and lessee in which the lessee agrees to pay for the use of an asset typically a vehicle for a set period of time.

Who is responsible for a leased car?

The lessee is responsible for a leased car.

What is the difference between a leased car and a car that is rented?

The major difference between a leased car and a car that is rented is that a leased car is leased for a set period of time while a car that is rented can be rented for a shorter period of time.

Can a leased car be driven by anyone?

No a leased car can only be driven by the lessee.

Can a leased car be driven outside of the country?

No a leased car cannot be driven outside of the country.

Is mileage a factor with a leased car?

Yes mileage is a factor with a leased car.

The lessee will be charged for any mileage over the set amount in the lease contract.

Are there any restrictions on what a leased car can be used for?

Yes there are restrictions on what a leased car can be used for.

The lessee cannot use the car for business purposes or to transport hazardous materials.

Can a leased car be modified?

No a leased car cannot be modified.

Can a leased car be returned early?

Yes a leased car can be returned early but there may be fees associated with doing so.

What happens if a leased car is returned late?

If a leased car is returned late the lessee may be charged a late fee.

What happens if a leased car is returned with damage?

If a leased car is returned with damage the lessee may be charged for the repairs.

What happens if a leased car is totaled?

If a leased car is totaled the lessee is still responsible for paying the remainder of the lease.

What is GAP insurance?

GAP insurance is insurance that covers the difference between the balance of a lease and the value of a car that is totaled.

Do I need GAP insurance if I have full coverage insurance?

No you do not need GAP insurance if you have full coverage insurance.

What are the consequences of wrecking a leased car?

The consequences of wrecking a leased car can be severe.

The lessee may be responsible for the remainder of the lease as well as any damage to the car.

Leave a Comment