It goes something like this: The insurance company pays out the actual cash value (ACV) of the vehicle, not the remaining balance of any loan/lease/balloon contract. Since you are the insured party, not the leasing company. anything beyond the remaining balance is cash back to you.
Oh, sorry I missed that part.
Exactly the point. If I put $5,000 down and the lease buyout and the acv is the same, it is a wash and I get no cash. If I put nothing down and the insurance company only pays out $5,000 less than acv, then I still get no cash, but gap insurance covers the difference and I get to keep the $5,000 I did not put down in the other scenario.
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Here’s that other thread:
I don’t know the score to the ‘auto score’ question but I’m a little dubious. My SO paid cash for her first two cars and did not lease until 30. No problem getting Tier 1 credit at MBFS.
I think it’s like this, if your ACV < remaining balance (ex: for ACV $20K and insurance payment = ACV):
balance $25K with $5K down - GAP covers $5K
balance $30K w/out $5K down - GAP covers $10K
So you lose $5K down payment in the first scenario and $0 in the second if the car is totaled right away. Otherwise - you lose prorated $5K.
If ACV > remaining balance - then you should get the difference, but not sure if it works this way since leasing company is the car’s owner.
It does, since you are the insured party. Insurance Co has no relationship with Lease Co, other than to know who gets paid first (Lease Co, then you).
Just one example:
Yeah, makes sense…
You’re probably stuck since you signed but you can try and ask. MF varies from car to car so the question on if that’s a good MF for tier 5 is hard to answer.
For example, Porsche tier 1 is almost ALWAYS .002.
MB AMG also frequently 0.002
And then on the flip side you can get a Mazda 6 for 0.000001…
My only question is, do you have any auto loan history? Regardless of credit history, any auto loan history? From what it sounds like you already signed the papers, if they are a decent dealership, and they haven’t finalized it with chase yet, call the dealership and ask if they can get you a tier bump, or if you can find a cosigner. In my experience, if it’s not going to cost them anymore money they will do it.
I have zero auto loan history. This is my far car shopping experience & I’ve had no prior loan/finance history.
I discussed some options with them at the time… They said if I was Tier 2, they would have been able to bump it but since I’m tier 5 there’s not much they can do with MF. I didn’t have anyone who can cosign with me who has stellar auto score either unfortunately 
Ah well it is what it is. Think of it as a premium to pay to get in the door. Enjoy!
Think about it from Jag FS point of view, you signed a contract at a high MF, why would they possibly change it?
If the MF is marked up by the dealer, the extra goes to them (not Jag MF who get the base). As in the case of the Lexus lease linked to above, the dealer has the discretion to return some of his profit to a customer, albeit this probably happens once in a blue moon.
I don’t think any of us have any knowledge of what the base MF is for tier 5 is. I also don’t think its legal to charge someone tier 5 when they should not be there. Either way its a signed contract and the OP basically has no recourse.
No lease transfers on Jags
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Do not Fret. You will not be at Tier 5 for ever, next lease will be better. Lots of people end up paying more due to dealer foisting warranties and extras on them after agreeing to a set monthly price. In your case, at least it was clear why there was an extra $75 in your payments. Enjoy the car and hope the next lease goes much smoother. And I don’t think you did a terrible deal at that payment.
Enjoy your car, make your lease payments on time for the next 39 months and you should be Tier 1 by the time you are done!
Once you go beyond the base MF for Tier 1, things become a lot more muddy.
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As far as further negotiating after the fact, I don’t think you will have much success with adjusting the MF after you have signed (especially if your credit score is not Tier 1).
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As far as a fair MF for Tier 5. It’s difficult to know. Some manufacturers have some guidance available through their manufacturers finance dept.
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Steps for rectifying. Other than a miraculous renegotiation. You always have the option of buying out the lease and financing the purchase at a better rate. It depends on how good of a MF you got and how that compares to your plan of holding onto the car.
Wow, thanks for all the feedback!
So here’s an update -
I signed the lease on Saturday and drove away with the car. I got a call from the dealership finance guy on Monday. He said he talked to Chase about my case and was able to get me a better MF (I think it was 0.00172). He made a case for me to the bank saying my auto score is low due to no auto history and not delinquent payments. This newly adjusted MF brought down my monthly payment by $15 to around $360.
He told me to come into the dealership again to sign a new contract - as he had not yet processed the previous one we had signed - and I was able to get a better deal without having to call him up myself. Being honest & friendly definitely worked in my case! And the car is awesome I love it 
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That may be the case, but you’re overestimating the fact that it’s not only total loss where you’d lose your cap cost reduction on. This would also apply to theft that isnt recovered. @Ed_Churchward is totally right in his suggestions…just because you’ve never experienced this issue it doesn’t mean that it’s not good advise for EVERYONE.