Question about GAP waiver in a lease contract - Mercedes-Benz Forum

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post #1 of 2 (permalink) Old 12-18-2014, 02:18 PM Thread Starter
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Question about GAP waiver in a lease contract


I recently leased a new C Class from a mercedes dealer in south florida. I was told that MB has a gap insurance and I don't have to purchase it from anywhere else. And in an event of total loss or theft I would only have to pay:

1. My deductible
2. Any amount due until that day.

This is also what it says on their website here

However this is what's on my contract which worries me

"We agree to waive the gap amount, if you had the vehicle insurance required by this lease (which I do) at the time of total loss, in which case you will pay to us the sum of

a. All unpaid amounts that are due or past due under this lease
b. The amount of your insurance deductible
c. Any other amounts that were subtracted from the vehicle's actual cash value to determine the insurance proceeds we received for the total loss.

So now my question is:

1. Do I have to pay all of my unpaid amounts that are due including future payments remaining from my lease? Or is it just until when the total loss happened.

2. The clause C is worrying me and it sounds like I would have to pay the gap amount? What other amounts are they talking about that were subtracted if it's not gap?

Clause C is not included in their official website so I'm not sure if they included themselves or is it standard amongst all MB dealers

Thank you
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post #2 of 2 (permalink) Old 12-18-2014, 03:27 PM
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First off, what is or is not or may or may not be on a website (or in a forum) is completely irrelevant.

The contract you signed governs your transaction.

That said, I would say your lease is a bit ambiguous. However, the intent of it is to fulfill the gap provision. Thus, I would argue that Clause (a) means any amounts presently due plus any amounts past due, not those in the future. Clause (b) means you pay them your deductrible, and Clause (c) means the usual things insurers apply to reach the total-loss value when fulfilling a claim. For example, if you had previous unrepaired damage, that would be a deduction.

Remember, that's an insurance calculation, not the lessor's.

Hopefully all will go smoothly and you'll never have to worry about those clauses anyway, just the usual arguments over wear and tear.

Hope that helps; good luck.

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