I am trying to get definitive information regarding the risks of a One Pay lease through TFS. I know there are other banks and other methods of leasing, but my question is assuming a One Pay lease. I have read many posts here but am trying to get a solid conclusion.
If I do a One Pay TFS lease and on day 1 the vehicle is in a total loss accident, would I be out all of the One Pay payment? I was told TFS does not do a prorated refund like some other brands do. However, are there other guarantees to get the lions share back? For example, insurance company pays off TFS in well excess of the agreed RV, is TFS legally obligated to disperse the excess to the lessee?
That could be true as of today and they can change their policy tomorrow before you sign a lease on Tuesday.
Just do a traditional lease with MSD unless the dealer can show you a one-pay contract with fairly unambiguous language about total loss events and insurance monies.
I would assume through TFS the in-case-of-total-loss provision would be the same for any dealer but as always will read it. In my situation, dealer will only apply a hefty amount of equity as a down payment, to cover MSDs, or towards one pay. Down payment runs in to the issue I am trying to avoid here, and MSDs makes payment higher obviously and thus the MSDs higher too. One pay has lower MF and if TFS is obligated to return excess in a total loss, seems like a little bit of the good parts of both.
