Lease w/ High Trade


I have a trade worth 14.6K

My Lease
MSRP 43815
Sale Price 38000
MF .00173
AQ fee: 595
Term: 36 mo
Down: 14,600 Trade Value
Dealer Doc fee: 80
Residual: 60
DMV: 400
Sales Tax 7.25

Is this allowed?

What are pros and cons?

Thank you!

You should never put this much down on a lease. As many people will tell you, you stand to risk losing that down payment if the car was totaled, stolen, etc. Sell the car separately. If you REALLY wanted to put all of that money towards a lease you should do a “one pay”, which would leave no monthly payment and you are protected from a total loss via gap insurance, etc. Finance companies vary, but usually a prorated total of the one pay amount would be refunded to you.

Lacking details on the car you’re looking to lease, model specifically, trade details might be helpfully too

You are absolutely nuts. Do not put $14k down on a lease!!!

Put $0 down. Take a check for the trade value.


Isn’t Gap Insurance for when you’re underwater?

And how would I lose the downpayment, when insurance would reimburse the market value of the vehicle just like they do when you buy?

Can you show me where its different for a lease?

Thanks for your help.

You do not get your down payment back in an accident.
Gap insurance is built into most leases now by the bank. Therefore, it is better to be underwater since GAP will cover you and you get to keep your 14k cash.


In a lease you are merely borrowing the vehicle from the bank and paying for their forecasted depreciation over the term. Putting cash down is not really the same as a down payment on a car in a finance situation. The car gets paid off in the event of a total loss through insurance and GAP if necessary (and included or bought), and you go back to square one.

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