[timmahh]

Originally Posted by Brendan///M

For what it’s worth, I called BMWFS and spoke to the total loss department. They are saying I will get 100% of the overage towards my next car, but I’ll only believe it when I see it. I’ll report back. Only expecting to get 50% at this point, unless something has changed recently.

Yeah that’s how my first call went… ended up with 50% equity as an account credit. Had to fight insurance to get executive approval to seperare out taxes and other items as a check to me and just the car (still market value) to BMW.

[Brendan///M]

Originally Posted by timmahh

Yeah that’s how my first call went… ended up with 50% equity as an account credit. Had to fight insurance to get executive approval to seperare out taxes and other items as a check to me and just the car (still market value) to BMW.

What other items? Just curious. I just spent $2k on new tires but I think those are added to the value of the car. There’s also the vehicle license fee refund, which should probably come back to me with the taxes. Anything else?

[bimmer813]

As a broker with 1400+ cars delivered, I try to keep my finger on the pulse on issues like this.

Previously, BMW would offer you 50% of the difference between your lease payoff and the insurance payoff as a Loyalty Payment Credit (which for some reason they abbreviate as "LCP" rather than "LPC," hah).

HOWEVER - A client who experienced a total loss has received an email from BMW stating the following:

"In light of the circumstances, we would like to inform you of a Loyalty Payment Credit for which you may be eligible, should you choose to lease or finance your next vehicle with BMW Financial Services. The Loyalty Payment Credit amount can be up to 100% of the amount remaining after subtracting your contractual Lease payoff from the insurance settlement resulting from the total loss. Please note, the Loyalty Payment Credit cannot exceed 50% of the sum of total monthly payments on the new lease or finance agreement. This offer, if eligible, is good for one year from the date of loss.

Here's how the Loyalty Payment Credit (LCP) program works: Once your new BMW Financial Services account is established, the loyalty credit reflecting up to 100% of the amount remaining after subtracting your contractual Lease payoff from the insurance settlement resulting from the total loss is applied within two weeks after the account is opened. The LCP payment will reflect on your account as a credit to which you may either reduce your monthly payments each month by a certain amount or use the credit to satisfy your monthly payments until the balance is used."

They state "up to 100%" so it isn't certain, however previous emails I've seen have stated 50%, so this is good news for anyone in a similar situation.

And if you're in need of any allocations, feel free to reach out, as we have allocations nationwide on all X5 trim levels (50e and V8 allocations for 2025 should come out next month).

Hope this helps some people out, cheers!

[Brendan///M]

Originally Posted by bimmer813

As a broker with 1400+ cars delivered, I try to keep my finger on the pulse on issues like this.

Previously, BMW would offer you 50% of the difference between your lease payoff and the insurance payoff as a Loyalty Payment Credit (which for some reason they abbreviate as "LCP" rather than "LPC," hah).

HOWEVER - A client who experienced a total loss has received an email from BMW stating the following:

"In light of the circumstances, we would like to inform you of a Loyalty Payment Credit for which you may be eligible, should you choose to lease or finance your next vehicle with BMW Financial Services. The Loyalty Payment Credit amount can be up to 100% of the amount remaining after subtracting your contractual Lease payoff from the insurance settlement resulting from the total loss. Please note, the Loyalty Payment Credit cannot exceed 50% of the sum of total monthly payments on the new lease or finance agreement. This offer, if eligible, is good for one year from the date of loss.

Here's how the Loyalty Payment Credit (LCP) program works: Once your new BMW Financial Services account is established, the loyalty credit reflecting up to 100% of the amount remaining after subtracting your contractual Lease payoff from the insurance settlement resulting from the total loss is applied within two weeks after the account is opened. The LCP payment will reflect on your account as a credit to which you may either reduce your monthly payments each month by a certain amount or use the credit to satisfy your monthly payments until the balance is used."

They state "up to [...]

I can confirm, they now provide 100% of the equity as a credit toward next lease. Got the same email. Phew!

[Brendan///M]

Update here: they are giving me most of the roughly 20k overage as a credit, minus my $2500 deductible that I still have to pay to them. It would seem this should be added to the credit, since it increases the amount they received as payment for the total loss, but I don’t know if I should push it, or just be glad that the credit is now 100% of the amount they received from insurance. Any thoughts? I tried to call and they do not appear to understand that the deductible is part (albeit my portion) of the total loss settlement they are receiving and they said the offered credit will not be revised. My insurance also would not separate the lease tax refund directly to me, but should not matter as it was basically added to the credit amount.

[TurtleBoy]

Originally Posted by Brendan///M

Update here: they are giving me most of the roughly 20k overage as a credit, minus my $2500 deductible that I still have to pay to them. It would seem this should be added to the credit, since it increases the amount they received as payment for the total loss, but I don’t know if I should push it, or just be glad that the credit is now 100% of the amount they received from insurance. Any thoughts? I tried to call and they do not appear to understand that the deductible is part (albeit my portion) of the total loss settlement they are receiving and they said the offered credit will not be revised. My insurance also would not separate the lease tax refund directly to me, but should not matter as it was basically added to the credit amount.

Your lease contract says you will pay them the deductible in case of a total loss so that is why they are deducting it.

[Brendan///M]

Originally Posted by TurtleBoy

Your lease contract says you will pay them the deductible in case of a total loss so that is why they are deducting it.

Right. But the contract says nothing about any loyalty payment credits. A few years ago, they did not offer any credit at all, then 50%, and now 100% of the amount they receive for my car. My thinking is the $2500 deductible is part of the settlement amount my insurance came up with for the market value of my car, with the only difference being that that portion is paid by me, rather than my insurance company. I’m not saying I don’t have to pay the deductible, just that the way the loyalty payment credit is described in the email, it seems it should include the overage calculated from the entire settlement amount. But I can just let it go I guess. Pretty crazy my 2022 X4M’s value near the end of its 3 year lease was less than 10K off the original price.

Edit: I think you might have misunderstood me. They are deducting it from the credit AND still requiring it to be paid. You’d think it would be one or the other (the email also says this: ie if deductible is not paid, we will use the credit to cover the deductible, so they’re double dipping).

[TurtleBoy]

Originally Posted by Brendan///M

Right. But the contract says nothing about any loyalty payment credits. A few years ago, they did not offer any credit at all, then 50%, and now 100% of the amount they receive for my car. My thinking is the $2500 deductible is part of the settlement amount my insurance came up with for the market value of my car, with the only difference being that that portion is paid by me, rather than my insurance company. I’m not saying I don’t have to pay the deductible, just that the way the loyalty payment credit is described in the email, it seems it should include the overage calculated from the entire settlement amount. But I can just let it go I guess. Pretty crazy my 2022 X4M’s value near the end of its 3 year lease was less than 10K off the original price.

Edit: I think you might have misunderstood me. They are deducting it from the credit AND still requiring it to be paid. You’d think it would be one or the other (the email also says this: ie if deductible is not paid, we will use the credit to cover the deductible, so they’re double dipping).

I might have, I thought you were referring to having to pay. Whether or not you get it in the credit is up to them. Contractually you are owed nothing. They are only giving you the credit as a marketing incentive and they control the rules on those. I understand your point of view but whether it seems right mathematically or not is immaterial.

[Spiderv6]

Just dealing with this now. Can’t believe the insurance company sent them every penny of the settlement. So they got back the sales tax that *I* paid to the state?

How can this even be legal.

Just got my demand from them for my deductible!

And here is the kicker, I cannot use the credit for another car, so I need to leave $8k on the table. I am furious about this.