Hey guys,
I was wondering if someone here with experience tied to leased vehicles could help me out. When I got my TLX I went with the full leased vehicle depreciation insurance (ie. total loss, insurance pays Acura the full leased value of the vehicle, lets say for this example it is $40k)
At first, I was wondering if it is an unnecessary insurance as my lease is at 0%, with zero down. So if the car was totaled, they would pay the depreciated reasonable value, and I would still make lease payment as usual and at the end of the lease I would simply take whatever was remaining and use my buy out.
The issue is of course that for Honda, they have no remaining collateral, and I assume that the insurance payment would be made out to Honda Canada (Not to me) for say $30k if it was a total loss today, and Honda would ask me to pay the remaining $10k to them (instead of the situation outlined above).
Am I correct in my thinking?