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Kris - car question for you

Hey lady! So we very likely are going to be leasing a new RAV4 tomorrow. We've hammered out the numbers and should be good to go, but is there anything I should be wary of? Is GAP coverage something we should invest in? Any tips are much appreciated:)

Re: Kris - car question for you

  • I am not sure that GAP is necessary with a lease. GAP insurance pays if you total your car and the insurance company pays less than you owe. I am not sure what the advantage would be on a lease since you are technically renting a car for a fixed period of time and insurance is generally higher on a lease than when you buy out right.

    The only other thing with a lease is if you think you will drive more than the allowed mileage a year (usually 10,000 or 12,000) it is usually cheaper to buy additional mileage upfront than when you turn it in. I would also make sure to know what they require when the vehicle is turned in. I have seen final payments in the thousands because of "damages" and maintenance issues.

    Also, depending on the lease length you may want to look into a service contract. I know people say they are a waste of money but if something goes wrong after the car is out of warranty, you will spend money on a vehicle that belongs to someone else. I bought a new car on Wednesday and I got a contract. It changed my payment less than $20 a month(my term is only 24 months so a longer term would be less) and my car is now covered for 6 years/77,000 miles, I have roadside assistance for that entire time and if I get repairs done where I bought it, no deductible.

    I also got something called Zurich Shield for my paint and interior. Once applied they warrant any enviromental paint damage or interior stains or damage (like dog ripping the seat with his nails, etc.). I thought it was totally worth it. I won't lie, I did get a great deal on it but I probably would have spent the $500 it usually cost.

  • Thanks for all the tips! We should be good on the mileage part - we're planning to buy it at the end of the lease. And Toyota is actually giving 2 year complimentary maintenance packages on new purchases right now. I'll ask for more info on GAP tomorrow - I had read somewhere that with a lease, you should get the GAP because we wouldn't have 'equity' in the car.
  • Okay, asked the expert, aka my dad.

    He said a lot of leasing companies build it in automatically to the lease because they require it as part of the lease so make sure that isn't the case before you pay for it twice. But, if not, he says it is a good idea but you shouldn't pay anymore than $300 for it.

  • Excellent - tell your dad thanks for me!
  • No problem! He is a great salesman, he convince me to buy a new car in 30 minutes when I wasn't even thinking about it!Stick out tongue
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