Paying off the balance of a lease early while keeping car

[metsgiantsfan]

For tax purposes I was thinking of paying off the balance of my lease..I have 13 months remaining on my lease. I was thinking of paying it all in 1 shot, then that way dont have to worry about making a payment in the next 13 months as well as I can take the whole payment as a business deduction as I need some deductions for this year. My question is, is there any downside of paying it off early? Someone once mentioned that if the car gd forbid gets totaled or stolen there might be an issue with insurance/gap insurance?  ANy truth to this? any downside or reasons not to aside from "why give them the $ now"?

[avromie7]

For tax purposes I was thinking of paying off the balance of my lease..I have 13 months remaining on my lease. I was thinking of paying it all in 1 shot, then that way dont have to worry about making a payment in the next 13 months as well as I can take the whole payment as a business deduction as I need some deductions for this year. My question is, is there any downside of paying it off early? Someone once mentioned that if the car gd forbid gets totaled or stolen there might be an issue with insurance/gap insurance?  ANy truth to this? any downside or reasons not to aside from "why give them the $ now"?

If the car is totaled, insurance pays out the value of the car regardless of remaining balance. Gap insurance covers the difference between the insurance payout and the balance due on the car. Chances are the early buyout is higher than the car is currently worth, so you would be risking that money if the car is totaled.

[metsgiantsfan]

If the car is totaled, insurance pays out the value of the car regardless of remaining balance. Gap insurance covers the difference between the insurance payout and the balance due on the car. Chances are the early buyout is higher than the car is currently worth, so you would be risking that money if the car is totaled.

Interesting thank you..So no other disadvantages that you know of