What is GAP insurance and why do you need it?
If you’re leasing a new car GAP insurance is well worth considering.
What is meant by GAP?
GAP stands for Guaranteed Asset Protection. This has nothing to do with the value of the vehicle.
You are insuring the difference in amount the insurance company will pay out if your new car is stolen or written off and what the finance company, which funded your new car, will expect to be paid to settle the outstanding finance.
Put another way is the difference between the insurance company pay out amount and the settlement figure from the finance company.
For example, you get a new car and three days later it is stolen and never recovered. Let’s say the insurance company will pay £10,000, but the finance company say the settlement figure is £15,000. Again this is nothing to do with the value of the vehicle. So you have to pay the finance company £15,000, but your insurance will only pay out £10,000, so you would need to find the balance, that is £5,000.
So GAP insurance covers you for this eventuality. And if you find yourself in the unfortunate position of having your new car stolen or written off, the GAP insurance will cover you for the difference between what the insurance company will pay out and what the finance company expect to receive from you.
The cost of GAP insurance is typically around £200 for the term of the lease and is payable at the start of the lease. And the good news is that there is the option to pay in ten monthly instalments by direct debit, so that softens the impact a little.
Another benefit of GAP insurance is that it will also pay up to £250 of your motor insurance excess in the event of a fault claim. And just to be clear the excess is the bit you have to pay if there is a claim.
So that’s it, GAP insurance explained, but if you still have questions please submit a query at http://www.carcontracthire.com/
Why leasing a car is a smart move for your credit score
If you think about it, debt and credit scores share the same analogy as the chicken and the egg! One is necessary for the other.
You build credit history only if you have a running loan, or some balance on your credit card. This “debt” enables the credit rating agencies to work out a credit score for you. So what happens if you have no debt…do you have no credit score? Well actually yes. If you have no history of paying off debt it’s difficult to give you a score.
There are many ways in which you can improve your credit score – the Money Advice Service gives some great advice https://www.moneyadviceservice.org.uk/en/articles/how-to-improve-your-credit-rating
Leasing a car is another option to consider if you want to improve your credit score.
Of course the most important thing to be sure of is that you can afford the rentals on any finance you are applying for – we can’t stress this enough.
Most of us need a reliable car to get to and from work and the option of driving a brand new car takes away not only parental worry of your son or daughter driving an ‘old banger’ but the concerns of ongoing maintenance costs and hidden, costly, extras.
With many of our deals coming in around the £100 a month mark for repayments, a new car isn’t a luxury anymore. To find out more about applying for finance to lease a car from wwwcarcontracthire.com please visit our FAQs http://www.carcontracthire.com/FAQ.aspx
Ssssh don’t say the ‘d’ word
Depreciation – what exactly is it and how can leasing a car avoid it?
Depreciation is quite simply put the difference between the amount you spend when you buy a car and the amount you get back when you sell or trade it in.
For example if you were to buy a brand new Range Rover Evoque you’re looking at a price of around £50,000 – sell it after three years and you can expect a figure of around £32,000 (depending on condition, mileage, specification etc.)
The Evoque is a car that commands pretty good resale value – for some vehicles they can lose up to 70 or 80% of their new price in three years.
According to stats for the AA a new car loses value as soon as you drive off the forecourt and by the end of the first year will have lost around 40% of its value. By year three, if you drive 10,000 miles a year, the average car will have lost around 60% of its value!
For many people though, driving a brand new car that has zero miles on the clock and that ‘new car smell’ is essential. We agree! There’s nothing quite like brand new, but you don’t need to face losing thousands of pounds to get that feeling.
This is where leasing comes in.
Currently only around 10% of cars on the UK’s roads are leased by individuals so that means 90% of you are missing out on the benefits and not having to worry about depreciation is one of them!
Of course you won’t own your leased car but it will be brand new when it’s delivered, it will be yours for three years and after this time you can simply hand it back and start all over again, leasing another brand new car.
Once you’ve chosen the make and model that suits your lifestyle, and your purse strings, you make an initial payment (usually the equivalent of 3 or 6 monthly payments) plus a standard admin fee and then monthly payments are spread over the term of your contract. No hidden extras, no worries about depreciation just a fantastic brand new car for you to enjoy.
We hope we’ve made you curious to find out more – so why not take a look at our deals today http://wwwhttp://www.carcontracthire.com/car-contract-hire-offers.aspx.carcontracthire.com/car-contract-hire-offers.aspx
Think leasing a car is just for your parents? Think again!
Car leasing is a cool option for younger drivers.
Perhaps the ‘traditional’ view of car leasing was that it’s for “Mr. Business” and that a hefty 5-door ‘wagon’ was all that was on offer.
From nippy Nissans and smart…Smarts, leasing a great first car for as little as £100 a month is a reality with CarContractHire.com
So just what makes leasing a good option for 20-somethings?
- New; you're driving a car which is never more than three years old. And you can have a new car every three years.
- Budgeting; you know what your monthly car costs are going to be. Especially if you choose the maintenance option
- Helping your credit profile – leasing a car helps to make you visible. One of the biggest reasons for personal leasing declined credit is failing to trace the applicant!
- Lower cost; when you buy a car you're buying the entire car, with leasing you're not so you pay a lot less.
- Peace of mind; with leasing you don't have to worry about what happens to the car after three years, it simply gets collected.
- Choice; with a lease company they are not trying to sell you a specific make or model. You can choose whichever you want.
- Simplified cost; your monthly cost is just one payment covering the car, servicing, road fund license.
One of our current hot offers is on the ever-popular Fiat 500. The 1.2 Lounge is a great little 3-door hatch. Available now in a range of colours including Pasodoble Red and Tech House Grey you can really express your personality with this little car. One review said the Fiat 500 is, “Surprisingly roomy for its size, has trendy retro looks and is easy to drive.”
Check out the deal today:
Spring has sprung - time to get the roof down?
Britons are some of Europe’s greatest convertible car enthusiasts, despite our less-than-suitable climate. Here in the UK we get very excited when the mercury hits the dizzy heights of 20c - the beaches are invaded by the masses, the shorts and flip flops make an appearance and there’s a sudden abundance of cars driving around with their roofs down.
So, now we’re coming into spring with the hope of long, hot summers days just around the corner, does the thought of driving down country lanes with the wind in your hair appeal? Convertibles have come a long way since the cloth-roofed versions that left you with damp seats and noise-induced hearing loss - but there are still things look out for if you are considering leasing one for the first time.
CarContractHire.com ‘Top Tips’ when leasing a convertible car
1) Stick to a standard colour - don’t be tempted to go for ‘August Sunrise’ orange.
2) If you are interested in the economy of the car, check out its performance with and without the roof up - it will vary.
3) Think about the boot space - many hard-top roofs retract into the boot of the car so check the space with both the roof up and down
4) Invest in a wind deflector - for noise and hair styling purposes!
5) It seems obvious but test drive the car with both the roof up and down.
CarContractHire.com currently have great deals on the Mazda MX-5, Mini Cooper, and BMW 218i convertibles saving up to £56 per month! There is only limited stock available so visit the site now for more details.