Most people in a lease are in this negative equity position. Like so many things, the idea of GAP Insurance is a good one. You just shouldn t pay the dealer a huge profit for printing a form. Many lease companies include GAP insurance with their lease agreements at no additional cost. It s a good idea to check the rates for auto insurance about every 3 years.
All leases have mileage limitations.
If you go over the mileage limitations you will pay a penalty usually between .10 and .25 cents per mile. One clever technique used by sales people is to put a customer into a low mileage lease, say 12,000 mile per year, even though they know the customer will probably drive 15,000 to 18,000 miles per year. They will say something like Don t worry about the mileage, we ll take care of it when you come back and lease your next car . Best bet, acknowledge how many miles you will drive when you start your lease and plan accordingly. Some companies will let you buy your miles in advance at a discounted rate.