edatoakrun
Well-known member
QueenBee said:edatoakrun said:TonyWilliams said:If you buy the warrantee now, and subsequently want to get a refund (your car gets sold, stolen, totaled, etc), you will likely get a prorated refund (when you specifically apply).
Therefore, I absolutely do not recommend buying the warrantee until the 36,000 miles / 3 year Nissan warrantee is near its expiration. The same theory holds for making a down payment on a lease. If the car is stolen or totaled while driving off the lot, all that down payment is lost.
Obviously, the situation would be far greater for a purchase.
"...The same theory holds for making a down payment on a lease. If the car is stolen or totaled while driving off the lot, all that down payment is lost..."
IIRC, this statement is incorrect, in most cases. Do confirm your coverage terms with your insurance company, if you want to put down a large payment.
Aren't current lease rates so low, there's now no real reason make a down payment larger than the minimum, in any case?
Tony, do they prorate it from the date you buy it or the date it really takes effect (36,000 / 3 year)?
edatoakrun, it has nothing to do with your insurance company. In fact if you are paying your insurance company more for gap insurance you should call and cancel that since the LEAF lease includes gap insurance. The issue is that the lease is worded such that if your car is totaled you can not buy the car/pay off the lease, all insurance proceeds go to NMAC, and any difference in your payoff relative to what insurance pays is absorbed by Nissan. That works great if you owe more than the car is worth BUT if you owe less than the car is worth (Which most people did initially, and would if they made large down payments/additional payments) then NMAC keeps that.
Read the terms of the lease...
This has nothing to do with "gap" insurance. The basic question is if your insurance contract protects your equity in a lease.
Why would anyone would want to make a large down payment on a current LEAF LEASE. Isn't the money factor something like 2% on current leases?
If you still do want to, read the discussion on the lease thread, posted months ago:
edatoakrun wrote:
I got a verbal opinion from my insure co. agent, that my interest, my large cap cost reduction payment, was covered, when I leased, last May.
A month ago, as I was considering buying, and reading both my lease, and insurance contract, the ambiguity of terms could not seem to be resolved, to my satisfaction, and in writing.
QueenBee wrote:
Did your agent read your lease? I have no doubt that insurance company will pay the full value of the car but unless I'm missing something or NMAC happens to be nice that day the owner of a totaled leased LEAF will walk away not owing NMAC anything and at the same time not getting any money.
edatoakrun wrote:
I was not exactly impressed with, either my Nissan lease agent's, or my insurance agent's, expertise in contract law.
The question of a lessee having significant "equity" in a leased vehicle, was novel to both of them, and is probably rather unusual. The usual reason for leasing, after all, is to avoid a large down payment, and the usual hazard, is an uninsured? "gap" of negative equity, in the leased vehicle.
As I said above, if your lease and insurance contracts, do not state that your interest is insured, I would suggest anyone making a large cap cost reduction payment, GET IT IT WRITING.
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