Something sounds fishy to me about this. Not disrespecting the OP as I doubt very much but what he is telling what he has been told, but my wife and I have leased multiple vehicles through the years, from Southeast Toyota Credit/ Subaru/Chase, Ally, and GM Financial. In every case the lease had built in gap protection, it was already rolled into the cost of the lease and was not an add-on on the lease contract. If I didn't know better I'd think this was dealer trickery.
I understand the willingness to get the payment as low as possible, but if you have $4k to put down, put that in a bank account and use to make the higher payment. As stated, if you put up $4K in advance and pull out of the dealership in the path of an oncoming car and your vehicle is totaled, the gap insurance only covers what is owed on the car. You are out your $4K. As a general rule try to put as little down as possible to avoid this potential loss. As for the post about using money down as a security deposit, that does seem safer, but you still are letting the finance company hold your funds, that could be in one of your bank accounts, for years.
Just some things to think about. BTW, Tacomas are a great vehicle to lease. Top quality as well as high residual. Good choice!
I understand the willingness to get the payment as low as possible, but if you have $4k to put down, put that in a bank account and use to make the higher payment. As stated, if you put up $4K in advance and pull out of the dealership in the path of an oncoming car and your vehicle is totaled, the gap insurance only covers what is owed on the car. You are out your $4K. As a general rule try to put as little down as possible to avoid this potential loss. As for the post about using money down as a security deposit, that does seem safer, but you still are letting the finance company hold your funds, that could be in one of your bank accounts, for years.
Just some things to think about. BTW, Tacomas are a great vehicle to lease. Top quality as well as high residual. Good choice!
