5) If your car gets totaled, you could end up with two car payments
There are scenarios where you’ll have no car but you’re stuck with the lease payments anyway. One example of this would be if your car gets totaled in an accident and the insurance company refuses to pay the entire value of your vehicle.
In this instance, you will get stuck with the extra payment. In the meantime, you’re off to find a new car with new payments. The best way to combat this from happening is to buy gap insurance, which is included or required in many lease agreements, but not always. If you do decide to lease, make sure that you are covered by gap insurance, even if you have to buy it separately from the lease agreement.
Car buyers may consider getting gap insurance to cover them just in case the same scenario happens. That is, the car is totaled and the insurance company doesn’t cover you for enough money to pay the loan balance still owned on the car. However, once car is paid off, gap insurance is no longer needed. On the other hand, someone who moves from lease to lease and never owns a car will always have the burden of carrying the expense of gap insurance.