GAP Protection
 
GAP Protection..............definitely recommended where there is a relatively low deposit funding method. Did you know that you can be out of pocket even where you have "Comprehensive Insurance" !!! - please read the information below. 
 
Customers of ours have had a few bad experiences with write offs, so we now try and let everyone know about the advantages of having GAP Protection................there is no requirement to take it out, but as long as you know about it we are happy. However, it is quite good value for the cover you get, and the peace of mind.
 

"Comprehensive" Insurance does NOT usually cover the GAP !

 
You can be out of pocket even where you have "Comprehensive Insurance"!!!   If your new vehicle is stolen or written off in an accident, there is a very real risk of your business being out of pocket - even where the vehicle is covered by a comprehensive insurance policy. This is because insurers will usually only reimburse you for the market value of your vehicle, which would not cover you for the outstanding funding charges or the initial depreciation of the vehicle......and this leaves YOU with a GAP !!. Cover can be had for a one-off payment from GBP 295!  Alternatively, it can sometimes just be added into your monthly payment if that is easier for you.
 
A typical example:- on the day that a GBP 21,000 car leaves the showroom everyone recognises that the typical car instantly depreciates, and might only be worth GBP 18,500. With Finance (eg HP) on top of the GBP 21,000, there may be around GBP 23,500 outstanding to the finance company (including their interest & charges) on the day the car leaves the showroom. If the car was written off next week, then the insurers may well only pay you market-value (GBP 18,500) whereas you will have GBP 23,500 still to pay to the Finance Company - you could be out of pocket by GBP 5,000 !!.
 

The solution? - GAP Protection cover (upto GBP 6,000) can be had for a one- off payment of around GBP 295.........the equivalent of just under GBP 100 per annum on a 3-year funding agreement.