Quote:
Originally Posted by Habsone
Very good informative post. For those who like to put money upfront to lower monthly payment, do not do that because in case your SAV get totaled you will lose your money.
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Not a problem, glad to lend a hand.
Yes, you're correct on the $ down on a lease. The MSD's do not fall into that same scenario upon a total loss before term maturity - and the same should apply for the tax payment (state specific, of course).
Meaning, if you elect to pay the tax up front, let's call it $3,600 on a 36 month term for simplicity - and the car is then deemed a total loss at month 4, whether accident/stolen/etc., - you are entitled to a refund of the balance, in this case 32 months, or $3,200. Yes, you may have to jump through hoops with the dealership, your insurance company, the state - but you're entitled to get it back. There's not much downside, IMO.