Deficiency is the difference between the amount owed on a leased vehicle and the current cash value.
If you have a serious accident early in the lease, such a deficiency may result in an insurance payoff that does not cover your obligations. For that reason, you want to be sure to have GAP insurance that will make up the difference.
Information for this was taken from the Cars.com’s glossary, written by Joe Wiesenfelder.
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Some car companies like Honda, include GAP insurance. Leasing today is a great option for most people. Now more than ever. Retention value for cars has never been so low. With so many incentives out there how does a new car have a chance of holding its value.