Gap insurance when your lease is a GREAT deal

Hi Guys,

I want to get your opinions and start a dialogue on GAP insurance when you have a great deal.

If the deal is achieved through great rebates and smart negotiation one can trim a large percentage of the MSRP of a vehicle and at that point does it make sense to buy GAP? Usually for Car purchases of brands that retain value , i.e. Honda if the down is over 30% of the car and you have a 4 or 3 year loan it doesn’t make sense to get Gap, one will more likely never be underwater on the loan.

I want to know what you guys feel about Gap in relation to a lease.

For example, currently there Kia, that has an MSRP of 27k , and with lease cash back and negotiation the purchase price is 17k now. It has a manufacturer’s residual of 55% or around or $15k. Now if I look at 2 year old versions of this car with around 24k miles that is around the price they go for so the residual seems to be a good marker of what it will actually be worth.

So as I get the car and drive off the lot the car automatically loses it value, but does it lose it to the point of $10k? Will the great deal be able to stay ahead of the depreciation?

I ask this because my insurance doesn’t offer gap and I feel like the cost of gap offered at dealerships are often over inflated.

I just leased the Kia optima hybrid and got the deal that you mentioned. That said, according to the finance officer and the paperwork that I signed, GAP is included in the lease a no additional charge.

I also leased a 16 camry se and know for a fact that GAP insurance was not included and was available for purchase. My insurance does not offer GAP, so just hoping all goes well.


I believe most leases now include GAP coverage. I know all GM Financial lease come with built-in GAP anyways.

That’s something new. I guess the protocol has changed since the last time I leased a car in 2011. Thanks for the info.

lease through Honda also includes GAP insurance. You can find the information at Honda Financial site

So as VW.
My question rather if there is a point to pay anything at all out of pocket?
If you have GAP insurance why not roll in all fees into the balance and take $0 sign and drive?
Isn’t GAP insurance will cover all that extra anyways?

That’s my strategy. Paying money up front could save you a little on rent (interest charges), but I like being able to drive away with a new car without playing a single cent. :slight_smile: