What happens in case of an accident leading to total damage of the car?
In the unfortunate event of an accident resulting in significant damage to your car, the following steps will be taken to ensure proper handling of the situation:
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Initial Assessment and Documentation
After the accident, all necessary reports and documentation will be completed. Once this is done, the vehicle will be transported to a local garage for evaluation.
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Garage Assessment and Insurance Involvement
The garage will conduct a preliminary assessment to determine the extent of the damage and the repairs required. If the damage is extensive and the cost of repairs is likely to be high, the garage will contact the insurance provider for further evaluation. The insurance company of the at-fault party will then send an expert to assess whether the car is repairable and if the repair costs are justifiable compared to the vehicle's current value.
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Total Loss Declaration
If the expert declares the car a "total loss" or "write-off," a report, along with any additional required documentation, will be provided to both the car owner and the leasing bank. In this case, the leasing bank has the option to cancel the leasing contract without imposing any penalty fees.
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Down Payment and Settlement
If you made a down payment on the vehicle, this amount will be considered in the final settlement. Depending on factors such as the amount of the down payment, the current contract month, the car’s value, and the leasing agreement, you may be entitled to a refund. Each case will be individually reviewed by the leasing bank to determine the appropriate settlement.
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Contract Cancellation
Your all-in-one contract, including any associated services, will be terminated accordingly, and no penalty fees will be applied.