350driver

Do I have to purchase Gap insurance when I am leasing a new car? Is it a requirement? I am in So. Cal, and the dealer is telling me that it is part of the drive off costs.

Thanks

SonnyakaPig

I don't think you need to purchase GAP insurance when you lease. Only when you buy and you owe substantially more than you put down.

I also wouldn't opt for lojack if you have insurance. Just my opinion.

350driver

Thanks for the Reply. I didn't think so, but the dealer is telling me that it is 100% part of the drive offs, and a requirement for the lease.

Around $1000 1st months Payment
Around $1000 for DMV Fee's
Around $850 for the Gap Insurance

I didn't know if this was normal when getting a new Lease from MBUSA or something that is a requirement in California.

Thanks

SonnyakaPig

You're welcome.

You know what, that's interesting. Because, when I was looking to lease a C63 from fleetrates.com, which is based outside of CA, they were telling me that GAP insurance wasn't necessary with leases.

But, I don't know what are MBUSA's requirements. I wish I could help.

Edit: I just did some checking and it looks like you can get GAP insurance with a lease. So that option is available. Certain non-dealership financing options like State Farm offer GAP with the finance agreement. So, sometimes you can avoid paying for it at the dealership and still maintain it.

Vic55

Almost all lease banks include GAP insurance--- there are a few that dont but MBCC includes it along with US Bank, Chase, and every captive leasing agent (Ford, Toyota, Nissan etc).

Only once did I have to buy GAP and it was with Bank of the West way back when I got a 2002 E39 M5.

Mort

Can you not get GAP Insurance as part of your regular policy for a lot cheaper? I have it for 2 years as part of my policy with State Farm in Canada.