Quote:
Originally Posted by MRCUR
But this is exactly why people say "If you put money down on a lease and total the car, the money is gone". As has been said many times, typically the reason money is put down on a lease is to lower the monthly payment. All of that money is immediately tied up in the car.
If you had kept the cash and gone with whatever the normal payment is, or done MSD's, then the money isn't tied up in the car if it's totaled. You're absolutely right that if you put a bunch of money down and have the car through the life of the lease, it doesn't matter. You're going to pay BMW the money one way or another.
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If you put 1-2k down then total the car, it might be gone but if you put 25k then you don't loose all of it, you might lose part of it.
Let's say the MSRP is 70K and residual will be 42K in 36 months. If you total the car in a month or two it won't be valued at 45k. Whatever the insurance will value it, after BMW gets their pay off, you get the rest.
Again i'm not encouraging him to put down 25K. I agree that he shouldn't put any money down.