Lease - how much gap do I need

[CAH706]

Leasing a car and im going to take out gap

Audi A6 allroad
List 49k
Initial deposit 1k
Monthies 330

ALA recomments 25k of cover. Im assuming this covers the monthlies (deposit is seperate cover)and any loss of gap in insurance cover.

Does 25k sound right?

[Jefferson Steelflex]

Sounds a bit high, but my experience of it is that the difference between 10k and 25k of cover is not a huge amount.

So, it depends on whether 15k (which seems more reasonable) is that much cheaper.

[CYMR0]

I'd say £25k doesn't sound crazy, especially as it's stepped.

Your worst case scenario is that the car is written off and the insurance offers you no more than the trade value of the car at the end of the lease, while the finance company wants you to pay them for the most expensive approved used car at basically list.

The cheapest 2014 car on the Trader, with "only" 45k miles, is £23k. The most expensive 2014 car is £35k, and I could foresee Audi asking for all of that. So you have an easy £15k gap between the lowest trade price and high end retail. That's the minimum I'd be comfortable with, and while I'm sure you could negotiate/argue the finance company's settlement figure downwards, you're also paying the gap insurer to make the hassle go away. If their value was even more optimistic than this, while you were also lowballed by your insurer, it would cease to be your problem.

You also have the matter of the two years' payments - £7k?

Unless there is a crazy progression between £15k and £25k of cover I'd probably go a little higher to be on the safe side.

[CAH706]

Thanks both

That helps me understand it a bit more