Question about prepaying/ single pay lease

[J_Boxer]

This is what my Ameriprise policy endorsement provides.

• New Car Replacement Coverage: Pays for a new vehicle of the same make and model, or if a new vehicle is not available, it pays up to 110% of the original vehicle’s Manufacturer’s Suggested Retail Price.
• GAP Coverage: Includes New Car Replacement Insurance for the first year of ownership, and then will pay the difference between the value of your vehicle and the amount of your original loan, up to 120% of the value of your vehicle. (If you lease your new vehicle, you may already have GAP coverage. Please check your lease agreement.)

I do have GAP included on my Honda lease however, it doesn’t include New Car replacement coverage.

@mikem

Gap insurance doesn’t help/apply, because with a prepaid lease, you are never under water (except maybe the last couple months of the lease). Gap helps in the situation that you owe more than the car is worth. In a prepaid lease, the inverse will hold true.

What you’re asking is if you will be reimbursed the difference between what’s owed to the leasing company, and what the car was worth.

The answer to that is- I’m not sure.

I’ve prepaid 2 leases, one thru Mercedes Benz and another thru Audi. MB actually has a provision in the lease agreement to protect you in the case of a total loss on a prepaid leased vehicle. Audi does not. So in the situation with Audi, i was reliant on my insurance company and VW financial to do the right thing if the car was totaled.

This is what my understanding is now becoming with Honda. They can’t give me an answer at this point whether they have that provision like your MB lease on my One Pay Lease. I’m reliant on my New Car replacement coverage for the first year and then after I only have GAP which would only cover the RV plus whatever the actual value of the car is in let’s say 2 years.