How to Manage/Mitigate Risk in a Lease -

[max_g]

@jeisensc

if a 1 pay or MSDs significantly reduce the rent charge, and you can, do it. Don’t worry about losing your 1P or MSDs in a total loss if you have gap

GAP has nothing to do with a traditional one-pay: the money is returned by the lessor on a prorated basis.

@southpole12

But if I’m understanding correctly if my residual is say 40k. Let’s say I paid 26k for the one pay lease. If the car is totaled 6 months later and the car is worth let’s say 55k. I would get the 15k over the 40k to pay for the vehicle. Therefore I would be out 11k minus those 6 months so maybe 7k I would be out.

Read your contract but the ones I’ve seen don’t work like that. You’re not getting money back from the difference between insurance payout and lease balance. You’d be getting your money back prorated from the lessor.

[themachine]

@leaseguru2

Down payment or Capitalized Cost reductions on a lease are ALWAYS lost if your lease vehicle is declared a total loss.

Not true, there are lessors who refund a prorated portion of the cap cost reduction if there is equity in the lease, e.g. NMAC.

@leaseguru2

Multiple Security Deposits will generally be refunded unless the lease is terminated early for reasons other than a total loss.

Also not true, there are lessors who use MSDs to offset the gap, e.g. MBFS.

Net net, you have to read the contract for YOUR lessor. What other lessors do is completely irrelevant.

[max_g]

@themachine

Not true, there are lessors who refund a prorated portion of the cap cost reduction if there is equity in the lease, e.g. NMAC.

A portion of DAS monies may also be recovered if insurance payout exceeds the balance AND company policy or state law requires the overage to go to the insured.

[Ursus]

Yep…
[101010]

[leaseguru2]

Thank you for pointing these errors out.
I have already modified the post to clarify the language and to avoid any confusion.
The bottom line, as stated in the WIKI section, it is imperative to read the specific language of your proposed lease before signing.

Leaseguru2