Quote:
Originally Posted by Veloist
Yeah that's a good a point I actually never thought of because I don't really total cars but it's a good point since anything is possible, God forbid. Especially with Scion offering the 0 down lease special that actually sounds pretty good even though that special ends in July.
But, people do put money down on leases and get a better deal when they finance their next car, sometimes even getting lower payments than what they were paying during their lease. Sometimes the risk is worth the reward!
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I think there are too many variables in the scenario that you aren't considering. if you total a leased and the car is gone and any money you have invested in it is gone. Maybe you don't total cars yourself, but you don't have complete control of your surroundings. You are probably assuming the car will be worth more than the residual when the lease terms are up, which it may or not have. Show me the math where you will lease a car, put $3k down, have a much lower payment and somehow end up with more equity?
You can buy down the lease with cash or trade, but as it was pointed out earlier this is not sound logic because you can't control all of your surroundings. You could literally drive right off the lot and get t-boned and you would lose thousands. You would be better to either pay the higher payment with your savings or put that money to work investing than paying down a lease. Also, be mindful that you should carry GAP insurance on a lease in case someone does total the vehicle. The last thing you want is to have to pay cash and be out of a car. Honda leases include GAP but I believe you need to buy them on top with a Toyota lease.