[Bianchi Dave]

Finally bagged a good lease deal on a 2nd car (for the other half mainly).

Mini Cooper 5dr, list price about 23k (with chili/media xl). Its a 9/35 10k miles deal, about £170 per month so all in cost is about 7.5k over the 3 years.

Just trying to decide if its worth taking Gap in this case. I have replacement gap for my car, which to me made sense on a car with a list of about 42k (but purchase price of 31k) that depreciates like a stone!

With this Mini I'm not so sure.

A quote from ALA (aka Pickles) on a personal lease Mini at this value comes in around £140 over the 3 years (before forum discounts), so likely less than £4 per month for the piece of mind.

I still need to check the exact wording re the first year with my own insurer, so it may be just years 2 and 3 which are the issue.....

What does the forum think??

Cheers

[simon.]

I would for the small cost involved. If the worse was to happen then you'd be paying for a lease on a car you don't have & the lease co still want their final value out of the car at term end.

[....,,,,..,,..]

Seems fine, remember you can get specific Lease Gap insurance and GAP that covers for PCP (which I believe costs a little bit more).

[Bianchi Dave]

Originally Posted by simon.

I would for the small cost involved. If the worse was to happen then you'd be paying for a lease on a car you don't have & the lease co still want their final value out of the car at term end.

Yeah that's my thinking. Just ran the quote properly with the Pistonheads 12% code and its £155, or £4.30 per month. That also includes cover for the 1.5k initial rental so a bit of a no brainer really for added piece of mind.

That is a specific quote for car on personal lease.

[Bianchi Dave]

Was getting a quote from Gapinsurance.co.uk (who are Frank Pickles, not ALA as I said above) who my BMW is with. They are even cheaper at £105.

Interestingly, the agent asked who the lease/finance company were - in this case its Arval.

He said he was aware that in some cases Gap wasn't required with Arval due to the way they calculate liability, and to check as I may be paying for something I don't need. Very honest of him and good service!

Arvals terms state "In the event that the Vehicle is stolen or, in the opinion of the insurance company, damaged beyond economical repair, the Hirer will notify ARVAL immediately. The Hirer hereby assigns to ARVAL the right to receive any monies due from the insurers. The Contract Term will terminate on receipt by ARVAL of such insurance monies or upon notification to ARVAL that the insurers have declined or refused to make any payment under the insurance policy and ARVAL will calculate the difference between the insurance proceeds received and the ARVAL Written Down Value at the date of termination of the Contract Term plus ARVAL's standard early termination administration fee plus VAT to produce a charge or credit. Any charge will be invoiced to the Hirer. ARVAL will also determine the difference between the total Maintenance Charges received and the total amounts invoiced to ARVAL (or authorised by ARVAL but not yet invoiced to ARVAL) for maintenance on the Vehicle to produce a charge or credit. Any charge will be charged to the Hirer.

The bit I've marked bold suggests that with Arval, its best to have Gap I'd say.

Anyone here leased through Arval and advised they didn't require Gap? I'd be very surprised...

[GAPInsurance]

Originally Posted by Bianchi Dave

Was getting a quote from Gapinsurance.co.uk (who are Frank Pickles, not ALA as I said above) who my BMW is with. They are even cheaper at £105.

Interestingly, the agent asked who the lease/finance company were - in this case its Arval.

He said he was aware that in some cases Gap wasn't required with Arval due to the way they calculate liability, and to check as I may be paying for something I don't need. Very honest of him and good service!

Arvals terms state "In the event that the Vehicle is stolen or, in the opinion of the insurance company, damaged beyond economical repair, the Hirer will notify ARVAL immediately. The Hirer hereby assigns to ARVAL the right to receive any monies due from the insurers. The Contract Term will terminate on receipt by ARVAL of such insurance monies or upon notification to ARVAL that the insurers have declined or refused to make any payment under the insurance policy and ARVAL will calculate the difference between the insurance proceeds received and the ARVAL Written Down Value at the date of termination of the Contract Term plus ARVAL's standard early termination administration fee plus VAT to produce a charge or credit. Any charge will be invoiced to the Hirer. ARVAL will also determine the difference between the total Maintenance Charges received and the total amounts invoiced to ARVAL (or authorised by ARVAL but not yet invoiced to ARVAL) for maintenance on the Vehicle to produce a charge or credit. Any charge will be charged to the Hirer.

The bit I've marked bold suggests that with Arval, its best to have Gap I'd say.

Anyone here leased through Arval and advised they didn't require Gap? I'd be very surprised...

I don't think it's Arval specifically... moreso that some Contract Hire agreements from a range of providers don't always require GAP insurance.

An agreement I once had with Lex for example, didn't require GAP insurance despite there being a shortfall between the motor insurance payout and their settlement figure (aka Early Termination Fee) - I was allowed to walk away without paying any of the shortfall... but I've seen other agreements with Lex since that would (or at least imply that they would) require GAP insurance in the same circumstances

In answer to your question though, you'd need to get confirmation of what Arval mean by the "Written Down Value" and more specifically, how they'd calculate it in terms of your liability. I do recall a past customer of mine advising that Arval were reluctant to reveal this prior to a Total Loss event - which I always thought seemed unfair though I'm not sure if that was crossed wires by the customer or, any reluctance from Arval.

It's worth posing the question.