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      02-15-2014, 09:56 PM   #7
Lieutenant Colonel

Drives: 2015 M235i
Join Date: Oct 2013
Location: San Diego

iTrader: (0)

Originally Posted by K3N R3D View Post
I don't understand what you mean. If its totaled wont the gap insurance cover all expenses for another new car?
It only covers the balance of the lease. You are out the down payment. Let's say you put down $4K on a lease, you exit the dealership and get t-boned destroying the car. You pretty much spent $4K to drive out of the parking lot.

Putting less down increases your monthly payments, but reduces your risk should something happen. This of course is when gap insurance is key as the insurance company will have to pay more in the same situation as above.