Eye opening deposit query for Contract Hire Purchase...?

[DJM]

Hi everyone.

Just been on the phone to my GAP company and found out some useful / interesting information...Well to me anyway

Apparently if you lease a car on Contract Hire Purchase, the deposit you put into the deal is not covered under your GAP policy. When I asked them if they did a separate policy to cover this deposit amount they said no. Those types of policies don't exist as far as they're aware.
This is different to my current PCP GAP policy which is Vehicle Replacement cover - I would get the full money back so I could buy another car to the original RRP.

If I had known this then I would've probably taken out my lease on a 3+23 rather than 9+23 in order to avoid losing a big deposit in the event of a write off or theft. It would probably only cost an additional £100 or so over the 2yr term in interest so that's got to be worth it surely?

Has anyone else come across or heard of this before? I'm just a bit shocked because I've never leased a car before and this wasn't made clear to me upfront. Although saying that it may be stated in the small print somewhere???

If everyone else knows this then I bow my head in shame. If not, hopefully this information will help someone else make an informed decision...

 

[c_200k]

I defintely didn't know that

Thanks

 

[Rory]

Has anyone else come across or heard of this before? I'm just a bit shocked because I've never leased a car before and this wasn't made clear to me upfront. Although saying that it may be stated in the small print somewhere???

There's a recent thread on Pistonheads (PH) where this happened to someone with a Golf R - there were very cheap lease deals on these a while ago and a lot of people dived into them.

However it's also a popularly stolen car, and the PH poster hadn't had his long when it disappeared off his drive.

What was really annoying for him is that his insurance company settled with the lease company based on the the lease company's settlement figure - which was a few £K less than the car was worth. But they wouldn't give him the difference, which would have gone a long way to covering his initial payment.

 

[DJM]

I defintely didn't know that

Thanks

I'm sure we're not the only ones. Glad I spotted it now though

 

[flowrider]

There are different types of GAP insurance.........i have the back to invoice version so my deposit is covered, i assume you have the version that pays off the outstanding finance value which doesn't cover the deposit.

 

[DJM]

There are different types of GAP insurance.........i have the back to invoice version so my deposit is covered, i assume you have the version that pays off the outstanding finance value which doesn't cover the deposit.

I know there are different types. I've been using GAP for many years.
This is my first leased vehicle and I was not made aware (like most people it seems) that there is ONLY ONE GAP policy available - which does not cover your deposit
Luckily I got my payment plan changed before collection

 

[ZokMb]

This is useful information and what prompted me to switch to 3+23 to control the risk. I have not signed up to GAP insurance use for my contract hire. Can someone recommend good companies for GAP insurance and a fair price i should expect to pay for this on a 34K E class?

 

[Primo]

ala.co.uk all the way.

 

[FaeLLe]

ala.co.uk all the way.

I find it pointless going outside MB to do the GAP especially if you finance with them, sorting it out is their problem in case of a write off.

Especially since MB will price match very nicely.

 

[DJM]

ala.co.uk all the way.

That's who I'm on about. They do not cover your deposit amount. If you're worried about losing it then go for a 3+ deal