A California man has filed a lawsuit against BMW, alleging that it left about $ 25,000 in equity after the crash of an M5 rented by a car manufacturer.
In October 2019, Alexander Russell signed a 36-month lease for the 2019 BMW M5. At that time, the car cost $ 115,816. Automatic news Russell reports that the super sedan suffered a full crash on February 14, 2022.
In a lawsuit filed in Central California, USA, the residual value of the lease was $ 81,589.57, but vehicle insurer Safeco set the market value of the vehicle at $ 106,178. Russell said he should have left $ 24,589.40 in capital after the balance of funding was repaid.
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Russell is looking for class status for himself and about 1,000 other BMW tenants who could face a similar situation. “Despite numerous attempts by the plaintiff’s lawyers to persuade Safeco to pay the plaintiff a shareholding, Safeco complied with BMW’s request to transfer the full amount,” the statement said. [BMW Financial Services]. ”
In court, BMW Financial Services told Russell’s lawyer in March that the complete loss of the car “made new statements” when Russell was denied the opportunity to buy a leased car and allowed BMW to refuse to lease it.
According to Leon Ozeran, a lawyer representing Russell, if BMW can apply for a lease due to the loss of collateral involved in financing, Russell will be able to pay off the loan and keep the car, in addition to the remaining equity.
“When renting a closed consumer vehicle, the consumer always has the right to purchase the vehicle during the lease term or at the end of the lease period,” the court said.
Russell has sued BMW for misrepresentation and deception, breach of alleged promises of good faith and fair dealing, unjust enrichment, interference in contractual relationships and potential economic benefits, unfair business practices and conversions that violate the California Business and Professional Code.