One pay lease good or bad

Anyone have any experience with a single payment lease?

I’ll copy what I posted inthe other thread to get the conversation started.

You need to look closely at the terms. They can make a lot of sense if you have the money as they can dramatically reduce the MF on the lease. Each manufacturer is different and the benefits you get will differ. As it is only a 1% lease you are looking at it will be up to if the marginal reduction in interest is worth paying it all upfront.

i.e. it is not a 3% lease which is suddenly 0.8%.

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Thank you once again.

I thought my vehicle was a done deal then, a friend called and said I could get supplier pricing from gm. So when I started going over the numbers and realized that they had this lease I might be foolish not to look unto it .

My last two 24m leases have been one pay leases thru Chrysler and Ford. I’ve never done a GM one pay lease but you get a 1% discount for 24m term and 1.75% for 36m term. I don’t think GM supplier pricing is any better than what dealers are already discounting. I hope I’m wrong bc I can get that discount too.

Thank you so much! I have never done that. So I haven’t a clue. I’m wishing for better than supplier pricing I know at least that tho. I didn’t get all the details
My cousin works for them and left word that she would sponsor me. I never even thought to ask her if they get a discount before. How stupid!

I have been told that supplier pricing, although useful, is not always the best deal. Best to negotiate your best price and then apply the supplier pricing.

Agreed, Audi supplier pricing is 6% off MSRP and it’s not always the best deal. Same with other manufacturers.

A one pay lease is very risky and of nominal financial benefit. If your car is stolen or totaled during the lease, the insurance will only pay the leasing company the balance owed, and you would lose ALL the money you paid up front! The earlier it happens the more you lose.

A better option if you have the cash up front is to open up a bank account with that money and use auto-pay for payments so you basically never have to make a payment, yet your cash is safe if anything happens to the car. You also earn interest on it and have an extra source of money to draw against in case of unseen emergencies.

I am not sure that is true if you have GAP. There were more knowledgeable people than me discussing this a month ago on the forum and I was under the impression that GAP saved the day.

No, GAP insurance only covers the difference between the market value of the car and what you owe on it. With a prepaid lease you owe nothing, so the insurance company pays the finance company the value of the car and you lose your prepay.


Gap coverage, even if included in your pre-paid lease, provides no benefit to you. It does not cover your cash losses — exactly the same as if you purchased your car with cash. This risk is greatest in the early months of a pre-paid lease, and lessens as the lease nears its completion.

Lots of wrong information here from Vachier. Even the link he himself posted contradicts what he posted.

“if your car should be stolen or destroyed in an accident, your insurance would pay only the current market value of the vehicle, not the total amount you have invested in your lease. You would stand to lose a large chunk of your up front cash payment — the same loss you would incur if you had paid cash to purchase your car.”

Can you quote the clause in your insurance policy that states the insurance company will pay the leasing company the balance owed?

I don’t have the time or interest in doing that since I don’t have any money invested in this deal. For the OP who may be investing a lot of money, I would recommend researching it very well before shelling out the cash.

Thank you! That sounds more reasonable . I will look into that. So same principle would apply if you put $$ down.

Bad idea. If something happens to the car you lose all the money you put down.

I’m going to check tmr about if I trade my car and pay the lease up front with that trade if this a tax benefit. Because I’m getting a new vehicle.

Please tell us how that happens. Say a car gets totaled and the insurance company pays out…what happens next?

In the UK you can get return to invoice GAP insurance. This means you get a payout for the full price paid for the car. Had a friend who’s car was stolen 2 weeks before he returned it, got 100% of his money back after 3 years of motoring. He was actually quite happy :slight_smile:

Does anyone know which benefit Hyundai Financial gives for a single pay lease?