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Old 12-05-2012, 09:59 PM   #46
tvguy
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Originally Posted by jlewisinsyr View Post
This is completely wrong! All general consumer leases are closed-end, meaning the final value is set and regardless of market value, there is no further obligation. It is possible to get an open-ended lease, but they are VERY rare and gap insurance would mean nothing in this case as that's not what gap insurance is..
See my other reply about the insurance. I will check at work tomorrow on open vs closed end leases. I made my statement based on the ads in the auto section of the local paper, all say they are for open ended leases.
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Old 12-05-2012, 09:59 PM   #47
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Sorry, wrong terminology, the common name for this insurance is "Residual Value Insurance".
Buyers don't buy that... the leasing company might to protect their investment because the buyer can turn in the car no matter what it's current value is
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Old 12-06-2012, 08:59 AM   #48
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Originally Posted by AndyLL

Buyers don't buy that... the leasing company might to protect their investment because the buyer can turn in the car no matter what it's current value is
The auto insurance companies in Alberta, where I live in Canada, offer this kind of insurance. Usually it is a little extra. The residual insurance here protects the buyer if there was an accident. The Insurance company will pay what it costs to replace the vehicle, not what your vehicle is worth. So if you have an accident a year later. They will pay what it costs to replace the vehicle at that time. You don't get dinged for depreciation. The coverage period of my insurance company is 60 months.

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Old 12-06-2012, 07:26 PM   #49
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The auto insurance companies in Alberta, where I live in Canada, offer this kind of insurance. Usually it is a little extra. The residual insurance here protects the buyer if there was an accident. The Insurance company will pay what it costs to replace the vehicle, not what your vehicle is worth. So if you have an accident a year later. They will pay what it costs to replace the vehicle at that time. You don't get dinged for depreciation. The coverage period of my insurance company is 60 months.
It's typically called GAP insurance, its almost always found on leases, sometimes on loans but much less common in the US.
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Old 12-07-2012, 03:48 PM   #50
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Thanks everyone!

So I did end up leasing and I am really happy about it.

Negotiated a really good price for the vehicle and then told the dealer I would lease.

Never was asked about any type of insurance though. Also, the sales tax is added to the monthly payment so I am only being taxed on what I am using.

Also got free oil changes and tire rotations included for the term of the lease.

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Old 12-07-2012, 07:16 PM   #51
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Thanks everyone!

So I did end up leasing and I am really happy about it.

Negotiated a really good price for the vehicle and then told the dealer I would lease.

Never was asked about any type of insurance though. Also, the sales tax is added to the monthly payment so I am only being taxed on what I am using.

Also got free oil changes and tire rotations included for the term of the lease.

Did you have to present any of your insurance declaration pages or who your insurance company was? If so, they probably just verified it from that information.
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Old 12-07-2012, 08:58 PM   #52
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The extra charges at the end of the lease is the sales tax being added.

Leasing does not include sales tax on the vehicle. At the end of the lease - if you choose to purchase the car - the sales tax on the new vehicle price is added. People don't realize this when they lease, and get mad at the dealer for the "hidden charges" when attemptingi to buy it. These are not hidden charges, it's the sales tax.
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Old 12-07-2012, 09:51 PM   #53
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Originally Posted by joedplumber View Post
Thanks everyone!

So I did end up leasing and I am really happy about it.

Negotiated a really good price for the vehicle and then told the dealer I would lease.

Never was asked about any type of insurance though. Also, the sales tax is added to the monthly payment so I am only being taxed on what I am using.

Also got free oil changes and tire rotations included for the term of the lease.

Congratulations and enjoy your new vehicle!
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Old 12-08-2012, 12:05 PM   #54
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Originally Posted by I Love Pluto View Post
The extra charges at the end of the lease is the sales tax being added.

Leasing does not include sales tax on the vehicle. At the end of the lease - if you choose to purchase the car - the sales tax on the new vehicle price is added. People don't realize this when they lease, and get mad at the dealer for the "hidden charges" when attemptingi to buy it. These are not hidden charges, it's the sales tax.
Sales tax is charged every month as part of your lease payment (with a few exceptions, ie. IL). There are no hidden charges, and lease quotes either state tax included or plus, tax, tags, etc. Either way you are paying the sales tax during the course of the lease, not at the end.

As for at end of lease, you are charged sales tax on the residual as you already paid tax on the difference between Cap and Residual in your lease payments.
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