Quick question. My insurance policy pays me full replacement cost if i total my lease in the first 3 years of ownership. Meaning if the sticker on the vehicle was 30k, i get whatever is left after subtracting the amount owed to the leasing company from the sticker price of a like new model. With this in mind, is it still detrimental for me to put money down on a new lease. Having a senior moment. Thank you in advance to any reply.
Are you sure about this?
Insurance does not payout MSRP of the car. They look at what similiar cars cost within 200 miles of you and GAP covers the rest in the event you are underwater.
I am sure. Its called the total replacement policy. Its not your typical gap. I used it when i totaled out my acura lease. I got a pretty decemt check from that.
Just curious. How much does it cost 
?
Did the insurance Co send you the overage directly or did Acura send it?
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How much are your insurance premiums? This sounds like something a high net worth insurer would do and would not be cheap. Usually see it on houses, never heard of someone doing it on auto.
I have Country Companies. I have the Keeper coverage. Its only good the 1st 3 years of ownership. I paid 1700 per year on my 19 Colorado. Im also older and have been with them over 20 years.
I believe, if i am remembering correctly it came straight to me from insurance after they took care of the finance company.
Taking every thing above as true. Then it’s just a math and finance question. Does the return from putting money down and paying less interest surpass the return (after tax) you could get on the money you are putting down via other safe investments options. In this interest rate climate, without knowing specifics, i’d wager for most brands you probably will be within a couple hundred bucks either way.
But really, once you start putting significant money down you probably want to do a one pay lease. That has all the advantages of financing a lower amount but usually also comes with a reduced MF as well. Also most brands include protection for lease being totaled compared to putting money down.
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Thank you for the reply. Much appreciated.
Just out of curiosity, do you have the text in footnote (1)?
If the policy functions as you say it does, the reason it is usually advised to not put a huge down payment (loss of the down payment if the car is totaled) would not seem to apply to you.
Note that many lease contracts specifically state that any overage in insurance payment above pay out goes to them since you’re covering their asset.
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Im hoping this link works. Im not very tech savvy. I will try to post it on my policy but have to figure out how to blur some personal info out. Click on get the basics. Scroll to what is car insurance then click on auto insurance coverage. Sorry all im trying to navigate the links to give u best information i can.
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