Sorry but that is incorrect. GAP insurance pays the difference between what you owe on a car and what it's worth if something happens to it. It's like mortage insurance. At the end of the lease term you either turn in the car or you purchase it for the price in the contract. Your choice and the price does not change. If 'here' is California like your profile says then you pay a state use tax on the payments which means not the full price. Individual cities/states sometimes force tax payments upfront instead of on the payment. I'd be surprised if there is a state that charges full tax on a lease... companies would revolt because they tend to lease a lot of items.