Automotive

Is a Lease Takeover considered Used?

  • Last Updated:
  • Oct 9th, 2019 10:50 pm
[OP]
Deal Addict
User avatar
Oct 20, 2005
1698 posts
444 upvotes
Toronto

Is a Lease Takeover considered Used?

For insurance purposes, would a Lease Takeover be considered a Used, New, or Demo car, considering that the legal owner has technically not changed (in my case, Audi FS)?

More specifically, will a lease takeover for a 2018 vehicle qualify for TDMM's 5-Year Replacement Cost Insurance (OPCF 43A)?
6 replies
Sr. Member
Mar 22, 2004
540 posts
321 upvotes
London, ON
That's a good question....following. Registration changes however, as this usually triggers a requirement for a safety certificate from what I recall when I've taken over leases.
Deal Expert
Jan 15, 2006
16144 posts
14150 upvotes
Richmond Hill
ncnmra wrote: That's a good question....following. Registration changes however, as this usually triggers a requirement for a safety certificate from what I recall when I've taken over leases.
Ownership is in the name of the leasor so there's no change of ownership, thus no need to safety etc., Just need to pay an admin fee to the dealer/manufacturer. As for insurance I'm not sure but that's certainly an interesting question.
Deal Addict
User avatar
Mar 7, 2007
4323 posts
1807 upvotes
If you are talking about a lease takeover, you would NOT be be the original lessor of the vehicle. You'd be the second one.

I understand that TD offers replacement cost only to the original owner / lessor of the vehicle.

If the car is used, then for insurance purposes, you are getting a used car. It is kind of obvious. If the Audi in question is a 2018 model, 0 kms, never registered / plated, then it would be considered as a new car.

You can get the definitive answer by calling them.
Deal Addict
Dec 20, 2015
3418 posts
1741 upvotes
Toronto, ON
mmmken wrote: For insurance purposes, would a Lease Takeover be considered a Used, New, or Demo car, considering that the legal owner has technically not changed (in my case, Audi FS)?

More specifically, will a lease takeover for a 2018 vehicle qualify for TDMM's 5-Year Replacement Cost Insurance (OPCF 43A)?
It will be a used vehicle, as others have mentioned you are the second owner. As for the OPCF 43A, there are rules and policies that govern that replacement cost insurance. Dealing with AllState once, they told me that the vehicle has to be under 36months and under 10K KM in order to qualify for the add on.
If you like the post or the comment, then don't forget to SMASH that LIKE BUTTON!
Sr. Member
Mar 22, 2004
540 posts
321 upvotes
London, ON
It didn't dawn on me at first, but you should check because I'm pretty sure most leases have something called "GAP Protection" built in.

https://www.thinkinsure.ca/insurance-he ... rance.html

In this case, I'm pretty sure its the same as the Replacement Cost Insurance you are referring to.
[OP]
Deal Addict
User avatar
Oct 20, 2005
1698 posts
444 upvotes
Toronto
Thanks all!

So I picked up the car and sure enough, a lease takeover is considered "used" for insurance purposes. This means that the car does not qualify for Replacement Cost Insurance. This was the case for TDMM at least.
ncnmra wrote: It didn't dawn on me at first, but you should check because I'm pretty sure most leases have something called "GAP Protection" built in.

https://www.thinkinsure.ca/insurance-he ... rance.html

In this case, I'm pretty sure its the same as the Replacement Cost Insurance you are referring to.
I think you're mostly (or completely) right.

The Finance Manager that I dealt with told me that all leases came with this standard. There's a difference between Replacement Cost Insurance vs GAP insurance. Replacement Cost Insurance will almost always pay out more money (effectively the payments you've paid already and any MSRP discounts at the time of purchase), whereas GAP will simply complete the lease (waiving you for any outstanding amounts that might arise from market values vs lease obligations).

Top