kevster

Hello all,

I just got a new G37S on a lease and can't seem to find any details on if GAP Insurance is included or not in Infiniti Leases. Does anyone know where I can find this info please? Or should I get GAP Insurance separately from my auto insurance company?

Any pointer appreciated!

Thanks,
Kevster

DiamondGCoupe

iTrader: (4)

IFS includes GAP insurance for your lease and most auto insurers automatically include GAP for new vehicles for which you will be paying a bit extra for and often times the coverage cannot be dropped.

christian655321

iTrader: (5)

GAP is pure profit for banks, I dont have the exact figures but this is a highly profitable line item for loans. If you are entering a new loan with negative equity its a good idea. Another reason for possible getting this type of protection is if you dont plan on refinancing and you are maxed out on your debt to income ratio. You would know if you elected to have it because it would be a seperate document that requires your signature.

If you refinance, you loose gap unless you buy it again. IMO it is a profit maker and not worth it in most cases.


after re-reading I overlooked that you are leasing the car... as long as your insurance coverage is adequate and you dont kill the car in the first year, I would save myself the 800-1200 bucks or whatever they charged you for GAP. This might be less for leases, I have never leased a car before.

Mike

iTrader: (1)

GAP is not pure profit. It is something you should ALWAYS have on your car unless you put a good chunk down and are financing for a short term.

Don't you think car insurance is profit? Or home insurance? These companies ARE in business to make money.

IMO, spending hundreds for peace of mind is totally worth it.

Leases will usually include GAP; what state are you in?

kevster

Thanks for your comments ppl.

Mike, I'm in CA.

Also, in terms of the price, my auto insurance co. is offering it for ~$50 per year (so it will be about ~$200 for the term of my lease). It's relatively cheap, compared to what a dealer would sell you the same for. However, q for me is that if the IFS Lease already covers it, then why pay for it again?!

kev

christian655321

iTrader: (5)

call the number for IFS and speak to a rep about your terms.

GAP is HUGE profit maker, and this is how I determine that.
The risk to the bank is minimal- In order for the banks to loose profit on GAP coverage
a TOTAL loss would have to occur on your car before the blue book value catches up to the amount you owe. Over time this value decreases significantly. so unless you have a loss in the first year, the bank wins.

is it worth it? yes and no. if neg equity going in then probably good idea.

cost is a major factor on determining if it is worth it or not. in most cases the cost of the coverage is in the underwriters favor.

gives you peice of mind ? yes

ask the question , Is the person purchasing GAP upside down enough on the loan that GAP would save them Thousands? Maybe they should reconsider purchasing a 40k dollar car.

DiamondGCoupe

iTrader: (4)

I'm not too familiar with California insurance laws or which company you are with but GAP insurance is usually only provided for a 6-month period (some only 90 days), therefore you cannot have this coverage for your entire lease.. I would double check with IFS because there is a high probability you are already covered. Just remember your auto insurance pays ACV not RC, if you total your vehicle right off the lot, you're already out well more than that $50!

Mike

iTrader: (1)

All IFS leases in CA will include gap.

In fact, all leases in CA will include gap, period. Why? Because the bank owns the car, and the bank wants to be covered in the case that you are in an accident.

I speak from a few years of leasing experience working at a dealership.


Some of you may have known me in the past as Mike@Riverside or Mike@RiversideInfiniti.

kevster

Perfect! Thanks for all the info people. Looks like I'm covered by IFS. I will just check with my insurance co. to ensure that I'm covered for the right amounts too.

Thanks again all,
kev

Mike

iTrader: (1)

you need 100/300 coverage on a lease.

kevster

Hey Mike, sorry but can you clarify what 100/300 coverage means please?

Thanks,
kev

DiamondGCoupe

iTrader: (4)

You must carry bodily injury limits of a minimum 100,000 per person 300,000 per accident, 100/300BI.

Mike

iTrader: (1)

^^Exactly what he said.

Personally, I'd recommend you have that level of coverage, even if you don't have it required, as if you hit an expensive car, or a car with passengers... you'll want it

The difference is usually fairly small relative to your premium for the year/half-year.

kevster

Got it, thanks guys. I checked and already had that level of coverage. So all good now!

Thanks!