Question: Will I be charged any penalties when I turn my lease car back in because it was wrecked and repaired?

June 14, 2005

Hi Tony

Great website. Quickly, here's my question:

I have a leased 2003 BMW M3 that sustained $21,000.00 in rear end damage. I was hit from behind. The dealer took 5.5 months to repair my car--yep, 5.5 months.

Anyway...there was frame damage. My car is coming off lease in about 9 months. I took the car to 3 different dealers to see about turning it in early. All 3 stated, in writing, that I have diminished value of about $7,000.00 to $13,000.00 because of the frame damage and therefore they can't certify it.

The dealer that repaired my car insists that if I wait until the end of my lease, the bank will not charge me for diminished value. Any thoughts?

Catherine,
Bethlehem, PA

Answer:

Hi Catherine,

If the $21,000, 5.5 month repair was done correctly and professionally there should be no more frame damage. It should have been repaired and put back to original specs. In other words it shouldn't be an issue when turning the car back in.

Whoever these 3 dealers are that told you the frame can't be certified are either telling you the truth, in which case the repair shop who fixed it should be made to repair it correctly, or they have other motives in telling you this. Maybe they're just ignorant, I don't know.

Perhaps you should contact the insurance company who paid for the repairs, and explain to them that you need help in determining if the car was properly repaired. Let them know that if you have a problem when it comes time to turn the car in that they and the body shop will be liable. Their help now could avoid any unpleasantness later.

By the way...when it comes time to turn the car in I wouldn't go out of my way to point out the repaired damage. You have to assume it was properly repaired and therefore it is not an issue.

Good luck....

All my very best...

Tony Iorio