Quote:
Originally Posted by Mister
And it is not a complete loss, you typically need full insurance coverage on a leased car no? I suspect the insurance payout would be enough to get another car.
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Also, whether you're leasing the car or not, in the event of a total loss, the insurance company will only pay out whatever they determine the ACV (actual cash value) is, which 100% of the time is going to be a chunk lower than MSRP. (You can combat yourself against this if your insurance company offers the new vehicle replacement -- I know Safeco/Liberty Mutual both offer this coverage for the first year.) So if you paid a big chunk as the down payment, you may not end up being upside down (and might even get some back). If you paid the minimum, you might still have to pay a little extra out of pocket. You'll pay the money one way or another, but paying more money up front doesn't really put you at a disadvantage.
And again, whether you're financing or leasing, you'll be required by your lienholder/leaseholder to maintain full coverage anyway. Even if you pay cash, you should still get it anyway. But remember that leasing typically requires you to carry liability limits of 100/300/50 or greater, which is well above the state minimum requirement in all states. If you already have that liability limit or higher, then it's not a big deal, but for some of the minimalists who only go for the absolute minimum required, it might catch you off-guard when you have to go from 15/30/10 to 100/300/50 and your insurance rates go up a big chunk.