car fire - quick solution needed

[Pegiloo]

What is the name of your state? new york
My car went on fire while parked. The insurance payout doesn't cover the loan amount. The type of loan is a smart buy lease. I have a deductible on my insurance also. I lose the car and I still have to pay the rest of the loan off. The car was just parked at work minding it's own business. I would assume this was caused by a defect in the car as it's only two years old and in excellent condition, no other problems before. When I called the car company to complain they want me to have the car towed to one of their locations (at my expense and I also have to find a dealer willing to take the car for that purpose) for an investigation to occur, that will take 10-14 days. They gave me no clue as to the possible outcome of this inspection other than to say that they might cover the tow cost depending on their findings. My insurance company recommended that I not do that as they will lose possession of the car and it will jeapardize my payout? - and it sounds like they don't trust the car company to be honest in their inspection either. My insurance company stated they do not know what caused the fire. It was in the tail light section of the driver side. Now I am driving a rental but I can't do that forever as I can't afford it by myself, and I don't know how long the insurance co will authorize the rental. I probably can't get another car loan at least not until I pay off this one, and I don't have the money for another down payment at this time either. So far it's a lose lose for me and it was not my fault - it was the manufacturers fault. Their car could have killed my family or my co-workers as I usually park it in the garage at home and at work, it was an act of God that I parked on the street that day and no one was hurt or property was damaged other that totaling my car out. I feel the manufacturer should pay for my out of pocket expenses - at least. I don't know what to do about the dealer inspection problem - the insurance co thinks the manufacturer should be able to carry out the inspection in the place the car is at now or in their salvage yard location. Who controls the car at this point? If I accept the insurance buyout now to pay off the loan - I might then have a chance to get a new loan - what happens to the case I think I should have against the manufacturer? Do I have the right to take possession of the car and move it after the insurance pays me? I have to have a car to get to work. I can't borrow a car either. Do I have the right to insist they come to do the manufacturer inspection on the premises the Ins co chooses? Do I have a right to refuse the insurance co payout amount for a while until I can figure this mess out? The Ins co wants to move the car to their salvage yard on Monday and todays Friday. If they can't move the car they said I will have to pay storage fees. Do I have any chance of getting any payout from the manufacturer? or am I tilting at windmills?
What is the smartest way to handle this problem? Some one please help!

[ecmst12]

The smartest thing to do would have been to make sure you had gap insurance, to cover the difference between the value of the car and the amount left on the loan. But too late for that now.

When the insurance pays you for the car, they are basically buying the totalled vehicle off of you, to dispose of as they see fit and try to recoup some of what they paid you. If you want to retain posession of the car, you will have to buy it back from them, reducing the amount of your payoff, representing the money they will not be able to get back by selling the car off for parts or scrap.

If you want to try to make a case against the manufacturer, it will be at your expense, including buying it back from the insurance company. Since you're already in the hole with the loan, that doesn't sound like a very good idea to me.

However, depending on how much you will have left on the loan after you apply the amount of the insurance payout, you may be able to get a new loan which will cover both the payoff on the old car, and whatever you will need to finance on a new(er) vehicle. Whatever new car and loan you get, make sure you have gap insurance on it! It was included as part of the loan for my current car (both the original and the refinanced loans).

[Pegiloo]

what about the part that it's a lease? Why am I dealing with the insurance payoff and not the dealer if it's their car? I thought I didn't own the car at all. I also thought that gap insurance came with the lease. I think something is wrong here. I never intended to own this car in the first place that's why I leased it. So what is the difference between a loan and a lease?

[ecmst12]

I missed that it was a lease. I have no idea. You have to look at your lease paperwork. I am SURE there is a provision in there about what happens if you wreck the car before the lease is up.