Based on the documents received (decision on cassation and a letter from the bank), you unregister the vehicle and submit confirmation to the insurer who pays compensation to the loan repayment account. After the money arrives at the bank, the loan is settled – the insurance is used to cover the outstanding capital, and the rest will be returned. The so-called. “Residue” (car wreck) is your property, which you can freely dispose of.
Loss of leased car
If the vehicle is canceled or stolen, you practically continue to pay monthly leasing installments, even though the general conditions impose the obligation to immediately repay the entire liability. Information about serious damage or theft is reported to the leasing company, which should from that moment be in touch with you and help in completing the formalities.
You report the damage to the insurance company and wait for information about the decision – the decision itself will be sent to the leasing company in writing. Be sure to contact your leasing advisor to discuss the fate of the “residue” (car wreck) and learn about the settlement options for the contract. What are your options? Your commitment is the sum of the discounted (by rate of vibrator, libor or euribor) remaining to pay the lease installments together with the redemption. You can repay all of your liability, thus settling the contract.
If you decide to freeze funds and repay the lease for some time, the leasing company will give you authorization to settle all matters with the insurer (including receipt of compensation) and as part of the settlement of the contract will sell the “remainder” (wreck) for the obligation described above.
If the compensation is necessary to settle the contract (you do not have the money to pay the contract), then you will have to continue paying the installments, declare the will to keep the “residue” (wreck), and after paying the compensation (this will be after the decision and after deregistration of the vehicle) to regulate the rest from the obligation described above – remember that the insurer measures the “remainder” and pays compensation less its value.
It may happen that the leasing company will take over the “remainder” (wreck) – then it is sold as post-leasing equipment in the auction, and the amount obtained from the sale together with the compensation paid by the insurer goes to cover the obligation arising from the settlement of the contract. If a surplus appears, it will be returned to you.
However, if there is a shortage, you must be prepared that you will be obliged to cover it – this situation may occur when the cassation or theft occurred at the beginning of the lease, which was concluded for 5 years, with a low payment and high redemption.