Tips on Buying Cars: large down payment and insurance, gap insurance, interest over time

Question
Hi there, 2 questions:

1/ I am about to lease a car and was want to put down a large downpayment so monthly cost is lower. In your opinion is that a good move or am i a sucker? - The lease rate is 3.9%

2/ Assuming i put down $20,000 and then the next day i get into an accident and the car is a write off. My insurance company will pay the dealer the cost of the car but does taht mean i'm out my $20,000?

Thanks.

Alex

Answer
1) Putting a large down payment if you can afford it is a good idea - it keeps the payments low and you end up paying less for the car in the long run... I do wonder why you bother leasing if you can put that amount down.. you could definitely buy if you so choose...

2) Different dealers will have different leasing policies... the best thing you can do is talk to them about what will be covered in case of an accident - if they don't have some form of GAP insurance (which pays the difference between what you owe on the car, and what its worth), or something of the like, you will need to talk to your insurance provider and see what they have as far as leases are concerned.  Be sure you check this out, because some dealerships may have a non-refundable down payment and will rob you of that 20,000... but if you check with them, read everything you sign, and talk to your insurance company - that 20,000 down should save you a lot of money in interest over time...