Quote:
Originally Posted by lllwlf
would you know if the lease payment is the initial lease payment or final-- i'm probably going to do a cap cost reduction.
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The deposit is based on whatever your final lease payment is after factoring in your negotiated price and any rebates or cap cost reductions.
Regarding cap cost reductions, take a look at posts 8, 9, and 11 in this thread:
http://f10.m5post.com/forums/showthread.php?t=739770
Cap cost reductions are generally not a good idea because in most cases your insurance will not reimburse you if the car is totaled during the lease. All you are doing is prepaying a portion of your scheduled payments, so the earlier in the lease the loss happens, the bigger the financial hit you take. As cpiguy pointed out in post #9, the exception to the rule is if the loss happens very early in the lease, but even this is dependant on your insurance carrier's rules. You are better off putting the money in a savings account and transferring in a portion each month as you make the lease payments. You achieve the same effect of lowering your net payment, but the cash remains in your control.
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