Audi Lease & GAP

[Lag_Lag]

I was actually looking for something in the event of total loss.

When they say "you will owe the excess up to the sum of the following: (i) the amount of your insurance deductible; and (ii) the total amount of any deductions from the insurance settlement we receive due to past due premiums, excess mileage, prior damage or otherwise related to the condition of the Vehicle before the Total Loss occurred.

Is that like saying, if the insurance payout isn’t enough to clear the Net Lease Balance, you will owe:

The difference between the Payout and the Net Lease Balance + Deductible + items in 25(b)(ii).

Or is it just

Deductible + items in 25(b)(ii).

[Dennis885]

Not sure I’m following you. The paragraph is titled “Total Loss”

What makes you think your lease includes GAP in the first place ?

[Lag_Lag]

I’ve read multiple times in the forums that Audi leases include GAP? I just wanted to make sure before I purchased it separately.

[Lag_Lag]

I think this is what I was looking for, missed it until the second read. It’s interesting since it’s not really asking for the difference between the insurance payout and the Net Lease Balance, but instead the deductible, past due payments, etc.

[Dennis885]

Oh ok. I’m sure someone here can confirm that.

I know there was a big post about BMW changing the language in their contracts lately. Not sure if the final outcome. Perhaps the same thing with Audi.

[Lag_Lag]

Yeah, because I’m reviewing some of the older contract language and they specifically mention GAP. With this contract, there’s no mention of it at all.

I’m doing a one-pay, so I was reviewing this:
“If the Net Lease Balance is greater than the insurance settlement we receive, you will owe the excess up to the sum of the following: (i) the amount of your insurance deductible; and (ii) the total amount of any deductions from the insurance settlement we receive due to past due premiums, excess mileage, prior damage or otherwise related to the condition of the Vehicle before the Total Loss occurred.”

It almost seems like I will owe the excess + the sum of the following. I would definitely like to get clarification on this.

[jeisensc]

@Lag_Lag

I’m reviewing some of the older contract language and they specifically mention GAP. With this contract, there’s no mention of it at all.

Audi changed their standard lease agreement from including gap insurance to adding a gap waiver

How to Manage/Mitigate Risk in a Lease -

How to mitigate risk in reviewing Manufacturer Lease Agreements Is Gap Coverage slowly disappearing from Leases? I have seen a disturbing trend in lease contracts over the last 5 years regarding the inclusion of GAP insurance (Guaranteed Asset Protection). Many lessors are replacing GAP Coverage, which was previously insurance purchased from a third party, with either: Excluding GAP coverage altogether and charging for GAP as an optional product or Modifying their lease agreements to incl…

Audi MSD refund policy

Technicality: you do not have GAP insurance with an Audi lease (or any lease). You have a waiver from being responsible for any gap in value. That is not an insurance policy. The exception being Toyota where you need buy a GAP policy.

For the customer, you are insured against a gap, effectively no difference. But there is no third-party gap insurance.

[Lag_Lag]

Thank you for replying! It’s clearing up some of the questions I had.

I’m not sure what I’m looking for when I’m reading the lease agreement for the GAP Waiver.

It just says I will owe the excess up to the sum of the following… that I posted above. I just want to make sure I’m understanding that language correctly.

[max_g]

@Lag_Lag

Or is it just

Deductible + items in 25(b)(ii).

It’s just this.

That’s what “up to” means.

If your deductible is, say, $500 and there are no items in (ii) then you’d owe $500.

[derekoh1991]

https://www.audiusa.com/us/web/en/shopping-tools/financial-services-hub/audi-pure-protection/gap-benefits.html

GAP is not available for purchase on a lease vehicle.

[Lag_Lag]

Thank you @max_g .

@derekoh1991 Thanks for that follow up as well.

I guess it will not be necessary for me to purchase GAP with GEICO then.

I will post my SIGNED deal up soon.

[ApexHunt]

What would be better was if Geico even offered Gap insurance. For what it’s worth, they are one of the few carriers that do not offer it.

At least last time I checked which wasn’t all that long ago.

[Lag_Lag]

Thanks for this information. I actually have two sets of auto policies and after your comment it seems like neither companies offer GAP.

[max_g]

@ApexHunt

What would be better was if Geico even offered Gap insurance

Are you leasing a car where you’re liable for the difference?

[Lag_Lag]

I thought I would have been liable, but after the interpretation I guess I don’t really need GAP

[ApexHunt]

Not at the moment.

More intrigued that the actuaries and fp&a peeps at Geico have run the numbers and determined it isn’t a product worth offering.

[jeisensc]

Last I checked, Travelers offered a separate gap policy. Two different BH companies, two different product mixes

[ApexHunt]

Just did a quick check and nothing showing that Travelers is owned by BH. Either my search skills are lacking or are you thinking of another insurance group?

[holeydonut]

Travelers is the insurance company that eric51 tried to get gap insurance for his lease, and this forum mocked him mercilessly.