[TaffyJerseyBean]

Originally Posted by Tony Harrison

As I explained, I don't currently use leasing or finance so that leaves depreciation as the only possible justification. And at the moment my car isn't depreciating significantly. I accept this is highly unusual and probably won't continue.

Dealers offering GAP insurance at the same time as huge discounts (eg almost 40%) is therefore a bit of a contradiction.

The cheaper insurance options may well make rather more sense.

Your car is not be depreciating at the normal rate at the moment because used car values are artificially high. The situation will right itself at some point and used car values will collapse quickly as the market recovers.

For you a GAP product that perhaps safeguards the value of your car today may well be worth looking into. This is a variation of the "Agreed Value" GAP product I mentioned and pays the difference between the insurer’s final settlement and an agreed value on the day you purchased the GAP policy.

If you had a write off, this type of GAP insurance would essentially put you back to where you are today.

Not trying to sell GAP insurance here. I'm just risk averse!