Quote:
Originally Posted by Ryan9095
I don't understand this logic. It's personal preference of keep money in the bank or putting it towards a lower monthly payment.
First of all you shouldn't be worried about totaling your brand new car immediately and possibly losing your down payment. You have gap insurance to cover the loss if a rarity like that should occur. Second, it's really just a mental thing. If you put $2000 down and pay a lower number instead of putting $0 down and paying higher you end up paying the same thing in the end. I'd rather have a lower monthly payment but that's just me. I don't see how it's a "bad" idea to put money down on a lease.
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I'll explain again, yes GAP insurance covers you, but it doesn't refund your down payment. It's personal preference, yes, but not financially sound. Which is why I'm making the suggestion to you for next time. Money down is money lost in a total loss.
So if I lease a car $0 down, and you lease a car with $2000 down (cap cost reduction), BOTH Cars GAP insurance will cover the total of the car, but you won't get a refund check for $2,000 or $5,000 or whatever amount you put down. That money is lost.
Nobody leases a car expecting to have a total loss obviously, but shit happens? Or are you guaranteeing there is 0% chance this occurs to you?
I rather have a higher monthly, put the money aside and pay towards the higher monthly so that I still feel like the monthly is lower, so that in the event of a catastrophic loss, I don't lose whatever money I haven't paid yet which I put aside.
Does this make sense?
Like you said, the end result is the same, money down or not in total payments, but the middle result isn't should you have a total loss. I keep whatever is left of my $2k going towards each payment in my bank where you lost it all.