GAP Insurance and Early Termination Insurance (ETI)
LMB,
I agree with "gonnandgotone" here. Sorry!
OK it's boring and middle aged, but all he say's is true... but there is more (BTW I am not a financial advisor, so please do your own investigations based on my information - don't just take my word for it)!
GAP Insurance (for stolen/written-off Lease Vehicles)
If your car get's 'tanned' as he put's it, and you are paying what's known as GAP insurance (you can also pay it as a lump-sum at the start deal, it's on average £150 for 3 years cover), then this cover's you for any difference between the insurance pay-out and the outstanding finance on the car. It simply means that you can insure against the un-insured loss of funds. All leasing companies have different types of GAP. Some pay a fixed amount (£5000 for instance), some offer to settle the debt on the outstanding finance. Please read each one and weigh up what you think you need.
Early Termination Insurance (ETI)
This facility isn't always available form all the Leasing companies, but it's is worth considering. ETI pays out if:
- your made redundant,
- your employer goes out of business,
- you suffer critical illness,
- become too sick to work and pay the bills.
I've found that all Leasing companies are different, so you really need to read that small print. Some pay for a limited time, others pay a lump sum, etc., etc. Worth knowing that ETI exists though I think.
Finally, nearly all the PCP (Private Contract Purchase)leasing companies that I've looked at make you the "Registered Keeper" of the vehicle. So it is (dependant on your payments) yours. It's as much your's as if you'd got a loan at the bank to buy it.
Hope all my meanderings help.
PS: Take a look at "http://www.moneysupermarket.com" for a fantastic loan comparison program. You can even find a new credit card whilst your there!!!
PPS: Do a search in "http://www.google.co.uk" for "PCP CAR LEASE" or goto central leasing databases like "http://www.uk-carleasing.co.uk/index.asp". Best of luck.
