rest assured, HE WAS NOT accurate. There isn't an insurance company in the world that will write a policy to cover the diff between residual and market value. Finance co owned by mfg oem (GMAC, Chrysler Financial for example) will sometimes increase the residual in order to create lower car payment in order to sell (lease) more cars. Why would an ins co write a policy in that case knowing that they will pay out. Hogwash !!Sometimes I wish people would just admit they really don't know the answer and tell you so.

At the end of one of my lease, the leasing company called me and made me an offer to buy the vehicle. That offer was below the residual and above the auction price. The offer was given because the residual and auction price diff was substantial. I was not interested in keeping that van and turned the vehicle in. I would think that if you really really really wanted that 3 year old car, you can purchase the vehicle at something less than residual IF (BIG IF) the market value is really bad. If that is the case, why would you be interested in something that the marketplace has determine to be of reduced value? Chances are, even if you purchased the car at the end of the lease, you would have paid more in total (lease+purchase) than if you would have bought the thing in the first place. Leasing companies want to lease you new car every x years. OEMs want you to buy new cars every x years. Leasing company will write the current lease so that they can make money...The residual is always higher than the auction price because they DON'T want you to buy that car. They want you to lease another NEW car !!!