Quote:
Originally Posted by ted99
My CA said the only significant downside was that the "owner's Choice" did not have total loss gap coverage. But, for me with USAA, they offer a rider for a small amount that bumps the payout for total loss to avg retail + 30% if I own the car--won't offer this on regular leases.. I wonder if this owner's choice is a Texas-only thing. Leasing rules here are interesting. For instance, if I do a one-payment lease, there is no sales tax (one-payment not available on owner's choice).
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I believe that Owners Choice financing is only offered in those states that apply sales tax to the total price of the car at purchase rather than to the lease monthly payment. By taxing the entire cost of the vehicle, and then including that in the capital cost of the lease, it makes leasing much less attractive than taxing just the monthly payment.