Lease Question; GAP coverage
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E320
Lease Question; GAP coverage
I paid off a three year lease up front for various reasons and to avoid finance charges. One aspect I overlooked was what happens to that money if the car is stolen or totaled, as the insurance only covers the residual. My insurance company doesn't offer a separate GAP policy or an add-on to the current coverage, but they do offer to buy out the lease via their bank and then provide GAP coverage. Am wondering if this is worth doing (it sounds involved and obviously the risk goes down with each year that passes.) Also, what happens to the remaining payments owed a leasing company if one pays off in traditional monthly installments and the vehicle is stolen or totaled? Are you still on the hook for that money, or does it only apply when a single payment is made up front, at the beginning of the lease?
