New Lease Car Insurance help

Penelopa.Pitstop

I think insurance companies use Glass Price Guide. I read couple of stories of stolen cars during the lease on Pistonheads and in one case VWFS provided replacement vehicle with better equipment than original one (that's probabaly 1 in a million case), in other cases companies agreed on price between themselves. There was also case of someone getting extra money from insurance company, after lease company was paid, because value of the car was higher than settlement.
I don't remember story when someone had to pay extra to finance company on top of the insurance payout but I don't want to be first one to be that case, that's why I buy GAP, just in case (and cover my initial payment). Other people may think it's not worth buying it.

Some links:
https://www.pistonheads.com/gassing/topic.asp?h=0&f=23&t=1759125
https://www.pistonheads.com/gassing/topic.asp?h=0&f=23&t=1808755
https://www.pistonheads.com/gassing/topic.asp?h=0&f=23&t=1507309
https://www.pistonheads.com/gassing/topic.asp?h=0&f=86&t=1630375&i=3640 - first post on a page, quoted text from Simonwhite2000 - replacement of car by lease company.

bery_451

Okay lastly when it comes to lease cars for servicing, will most lease companies allow the driver to choose & nominate their local vat registered garage for the annual car service that use approved parts? As long garage will stamp the car service book and provide a vat invoice of the service will this be okay, or do I have to get it serviced by the main dealers or dealer approved garages?

Is the driver allowed to service the car showing receipts of approved parts that the driver bought but no service stamp?

Finally can 2nd annual service be avoided by returning the car few days earlier before lease contract ends?

Penelopa.Pitstop

You have to read finance contract. Different companies have different requirements. Some require service at franchised dealership, some accept VAT registered one. Yes, you can return car a bit earlier to avoid second service.

bery_451

Its confusing cause the lease company I ordered from is Stoneacre and the contract finance 60 page document that I am about to sign is all underwritten by ALD Automotive Ltd. So who dictates what in the contract and who do I go to for further clarification? 
I ask because Lease company might say something different & ALD might say something different however the Lease company should handle all customer queries right or they just the middle men/broker?

Who bought the new car 1st at trade price off who? 

RBN20

As already mentioned, the value you put in at new sale stage is then not relevant when an insurer pays out, as the value would have changed anyway, so I wouldn’t worry too much about that. 

When a lease vehicle is written off your insurer will do market research and use industry guides such as the Glasses Guide to determine the current value of the vehicle. They will then pay that amount to your finance company, but your insurer will deduct the VAT element on lease vehicles, as the finance company will have the ability to reclaim that themselves if they haven’t already. (Which is likely why it was showing as 5k less on your paperwork). Your finance company will know this, so don’t panic if you feel like the value sounds low, your finance companies early settlement figure should be Net of VAT anyway. 

GAP insurance is a good idea as it would cover you for any shortfall, as you do not own the vehicle if you feel that the value placed on it is not high enough many insurers will not allow you to dispute the amount, and would say the finance company would need to dispute it as the owners, which a lot of the time they won’t do, as they will just pursue you for any shortfall. Quite often even if the value is fair and acceptable it does not cover the outstanding finance on a vehicle, due to interest being added on to the finance settlement etc, and your insurance is there to cover the market value, not the finance ageeement, this is what the gap insurer is for. 

Unfortunately as previously mentioned, no insurer will do a New Car Replacement on a lease vehicle like they would on other vehicles. 

Each finance company have their own terms so it is best to contact them directly about who can service the car, just like it is worth asking the insurer that you are considering using any in depth questions, we the companies themselves are in the best position to answer your queries 

Penelopa.Pitstop

bery_451 said:

Its confusing cause the lease company I ordered from is Stoneacre and the contract finance 60 page document that I am about to sign is all underwritten by ALD Automotive Ltd. So who dictates what in the contract and who do I go to for further clarification?

ALD will be the owner and registered keeper. Their condition apply. It doesn't matter which dealer supplied the car. There's plenty of info on their website, together with brochure: https://www.aldautomotive.co.uk/driver-area-site/user-guides/SiteAssets/ALD-Driver-Guide.pdf See page 7, Personal Driver with Customer Maintenance.
"SERVICING, MAINTENANCE & MOT

„It is your responsibility to ensure all servicing and maintenance work is carried out by an authorised dealer and that a full service  history and a valid MOT certificate are kept up to date.

„If you miss a service or your service history log is incomplete when you return the vehicle to us, you or your company will be liable for any costs incurred e.g. as a result of an invalidated warranty or lower resale value.

„You must check oil and fluid levels regularly and top-up as necessary in-between services."

bery_451

RBN20 said:

As already mentioned, the value you put in at new sale stage is then not relevant when an insurer pays out, as the value would have changed anyway, so I wouldn’t worry too much about that. 

When a lease vehicle is written off your insurer will do market research and use industry guides such as the Glasses Guide to determine the current value of the vehicle. They will then pay that amount to your finance company, but your insurer will deduct the VAT element on lease vehicles, as the finance company will have the ability to reclaim that themselves if they haven’t already. (Which is likely why it was showing as 5k less on your paperwork). Your finance company will know this, so don’t panic if you feel like the value sounds low, your finance companies early settlement figure should be Net of VAT anyway. 

GAP insurance is a good idea as it would cover you for any shortfall, as you do not own the vehicle if you feel that the value placed on it is not high enough many insurers will not allow you to dispute the amount, and would say the finance company would need to dispute it as the owners, which a lot of the time they won’t do, as they will just pursue you for any shortfall. Quite often even if the value is fair and acceptable it does not cover the outstanding finance on a vehicle, due to interest being added on to the finance settlement etc, and your insurance is there to cover the market value, not the finance ageeement, this is what the gap insurer is for. 

Unfortunately as previously mentioned, no insurer will do a New Car Replacement on a lease vehicle like they would on other vehicles. 

Each finance company have their own terms so it is best to contact them directly about who can service the car, just like it is worth asking the insurer that you are considering using any in depth questions, we the companies themselves are in the best position to answer your queries 

Okay if the finance/lease company claims back the 20% VAT then they should be happy for settling with around 5k less then from the insurer unless finance/lease company has paid full VAT for their vehicles.

So finance/lease companies have 2 discounts for cars that us average joe public cannot get and that is:
- VAT exemption
- Trade discounted price for wholesale/bulk orders

Joe public, car buyer has to pay the full RRP dealership price.

So now that you mentioned that finance/lease company can claim back VAT then why dont they be happy with the insurer settlement that covers more on what they really paid for the car in the 1st place after the 2 discounts mentioned above?

I doubt the depreciating asset can catch up fast enough to those 2 discounts.

Lastly theres no interest I believe in my 2 year lease contract car. Just the same 24 monthly figure payments. No interest or deposit paid. So is Gap for me? 

rs65

bery_451 said:

 So is Gap for me? 

Back to basics

What does the lease say will happen in the event of a total loss - in particular, what will you have to pay for the car and will you have to make any future lease payments?
You need to understand your risks and see if there is cover available to suit

bery_451

rs65 said:

bery_451 said:

 So is Gap for me? 

Back to basics

What does the lease say will happen in the event of a total loss - in particular, what will you have to pay for the car and will you have to make any future lease payments?
You need to understand your risks and see if there is cover available to suit

So driver of the car is still liable for monthly lease payments after lease/finance have been paid out by the insurance company? Doesn't sound right. Its like still paying for a mortgage for a house you been kicked out of by the bank.

There a post earlier in thread by someone saying lease/finance company is happy with market value settlement. 

Confused again 

bery_451

Penelopa.Pitstop said:

Check this out and when buying use discount code MSE25 https://www.ala.co.uk/gap-insurance/contract-hire-gap-insurance
Regarding replacing car with new in 1st year, you have to be registered keeper. Do some leg work, go to Churchill website and read terms and conditions of their policy.  You should read T&C before buying any policy.

I got a quote of £134 for 24 month term. Cant see option to remove Initial rental cover of £3000 as I dont need this.

Also MSE25 code only gives me £6.70 off not 25%.

What to do?

You did mention earlier that finance/lease company will be happy with market value insurance payout settlement at the time of write off so do you suggest for me to still get GAP cover?