Why should you protect your Lamborghini?
The idea of Gap Insurance is actually very simple. Over a period of time cars including your Lamborghini will lose value. This is not normally a problem as ordinarily you choose when where and how your Lamborghini is disposed of. You decide when where and for how much you part exchange your Lamborghini for.
We all accept that cars lose value over time even without realising it. After all a brand new Lamborghini will be significantly less than a four, five or six year old model.
However, if that choice is taken away from you, if your Lamborghini is written off then you are in the position of only having what ever your own insurance company offers you as they are only ever legally bound to offer you the value of your Lamborghini on the day of loss this can and often is thousands if not tens of thousands of pounds less than you originally paid.
Gap Insurance can however, help as depending upon which level you chose you can choose to protect either simply a financial obligation, the invoice price or even replacement cost.
Please remember that at Shortfall we have worked hard to make sure that our policies are some of the best if not the best in the UK however they can not stop your Lamborghini from being stolen and they certainly can not stop you from being involved in an accident, either of which can be very upsetting and stressful.
We can, however, make sure that if the unthinkable happens that at least the financial aspects are taken care of.
On this page you will find three examples Gap Insurance and how the different forms can help protect you in different ways: Return to Invoice, Vehicle Replacement and Contract Hire/Finance Gap. In these examples, we use Phil and his Lamborghini Aventador.
All our policies are genuine, tried and tested and all backed by the financial compensations scheme. A renumber of our policies are currently subject to a range of awards, for both cost and quality.
What can Vehicle Replacement Shortfall Gap Insurance do for your Lamborghini?
Vehicle Replacement Shortfall Insurance is designed to pay you the difference between the market value of your Lamborghini at the time it was written off (which you will be paid by your comprehensive insurer) and the amount you now need to purchase another Lamborghini the same age, mileage and condition as yours originally was when you first drove it out of the showroom.
Please note that if your original model is no longer available, then you will be paid a settlement based on the cost of the superseding model.
Please see the below example which we have provided to assist your understanding of Vehicle Replacement Shortfall Insurance:
Phil purchases a Lamborghini Aventador for £50,000. Three years later, his Lamborghini is written off as a result of a motoring accident. Phil receives £25,000 from his comprehensive insurer, given that this was the market value of his Lamborghini at the time it was written off.
Phil is informed by the dealership that the model has been upgraded and that invoice price of his Lamborghini has increased by £25,000 to £75,000. Without any form of gap insurance this would be the only amount that Phil would have to be able to replace his Lamborghini and or clear any finance he may still have outstanding.
This also means that for Phil to purchase another Lamborghini Aventador, he needs an additional £50,000. Vehicle Replacement Gap Insurance will pay Phil the £50,000, so that he now has the full replacement cost and is back in the position where he can purchase another Lamborghini Aventador if he so wishes.
If the original Aventador model is no longer available, then Phill will be paid the relevant funds to purchase another Lamborghini of the same age, mileage and condition as his original was when he first drove it out of the show room.
What can Return to Invoice Gap Insurance do to help protect your Lamborghini?
Return to Invoice is the one of the most basic forms of Gap Insurance, and most likely the level of cover that your local Lamborghini specialist spoke to you about.
Simply put, Return to Invoice pays the difference between your Lamborghini's valuation on the day it was written off and the original invoice price you paid. Between your two insurance companies you are paid the invoice full invoice price of your Lamborghini (less road fund license which you can claim back from DVLA).
If you paid for your Lamborghini using a form of finance then please remember that you will need to clear any outstanding finance, then the balance of the funds, the deposit you have and paid and any equity that you have accrued while making your payments will be yours to do will as you see fit.
Lets look at what happens when Phil's Lamborghini is written off and how his Return to Invoice Gap Insurance policy performs.
Phil purchases his Lamborghini for £73,000. Three years later, his Lamborghini is written off as a result of a motoring accident. Phil receives £48,000 from his comprehensive insurer, given that this was the market value of his Lamborghini at the time it was written off. Without any form of Gap Insurance the £48,000 is the only amount that Phil has to be able to replace his car and or clear any outstanding finance.
In this example as Phil had protected himself with a form of Return to Invoice Gap Insurance he would now receive a second payment for £25,000 meaning that he now has the full purchase price back. If Phil had paid for his Lamborghini using a form of finance then Phil can now clear any outstanding finance and then the balance of the funds, the deposit Phil paid and any equity Phil generated while making his payments is his to spend as he wishes.
What can Finance and Contract Hire Shortfall Gap Insurance do for your Lamborghini?
Contract Hire Shortfall Gap Insurance is designed to pay the difference between your Lamborghini's market value on the day it is written off (which you will be paid by your comprehensive insurer) and the amount that you have outstanding on your finance agreement.
Finance and Contract Hire Gap Insurance will therefore mean that you can walk away from a finance agreement without any financial liabilities.
Please take a look what happens when Phil's Lamborghini is written off and how his Finance and Contract Hire Gap Insurance policy performs.
Phil takes out a four year finance agreement to purchase his Lamborghini which he is buying using a form of a lease. Two years later, Phil is involved in a motoring accident that thankfully leaves him unhurt but his Lamborghini is written off. Phil motor insurance company send the market value of his Lamborghini directly to his lease company.
However, even after this settlement payment, there is still £10,000 outstanding on Phil's finance agreement. without any form of gap insurance Phil is now left in the terrible position of having no Lamborghini and having to use what ever savings he has to clear finance on a car that he no longer has.
Finance and Contract Hire Gap Insurance would simply pay the difference between Phil's Lamborghini's value on the day it was written off and clear the outstanding £10,000., yes Phil still has no Lamborghini and yes he still has to find a deposit or advanced rental for another car but at least he is not left paying for a car he no-longer has. This means that Phil can walk away from the finance agreement without any financial liabilities.
Industry experts claim that the average vehicle can depreciate by up to 50% in the first three years. To put this into context, your Lamborghini can lose as much as half of its original value within the first three years. It is important to stress that no vehicle, not even a Lamborghini is immune from depreciation.
We understand that no driver, especially those who own Lamborghini do not want to hear about deprecation, given that they will most likely paid a considerably large sum for their Lamborghini and now told that half of this will in theory disappear within the first three years of ownership. This is why it is so important to protect your finances with Shortfall Gap Insurance.
To assist you with your understanding, we have designed a number of examples of Lamborghini depreciation to demonstrate what impact depreciation can have on your finances. In these examples we use figures from 'What Car', who provide historical and current data in order to predict what your Lamborghini will be worth in one to four years time.
Example 1 –
Lamborghini Gallardo Spyder 5.2 V10 LP560-4
Invoice price you paid - £167,628
Year 1 – £101,851
Year 2 – £84,535
Year 3 – £70,253 – You will see that within the first three years, your Gallardo Spyder has lost £97,375
Year 4 – £60,849 – You will see that within the first four years, your Gallardo Spyder has lost £106,779
Example 2 –
Lamborghini Gallardo Coupe 5.2 V10 LP560-4
Invoice price you paid - £157,668
Year 1 – £97,029
Year 2 – £80,568
Year 3 – £66,930 – You will see that within the first three years, your Gallardo Coupe has lost £90,738
Year 4 – £58,006 – You will see that within the first four years, your Gallardo Coupe has lost £99,662
Example 3 –
Lamborghini Aventador Coupe 6.5 LP700-4 2dr
Invoice price you paid - £242,280
Year 1 – £175,483
Year 2 – £145,683
Year 3 – £121,067 – You will see that within the first three years, your Aventador Coupe has lost £121,213
Year 4 – £104,859 – You will see that within the first four years, your Aventador Coupe has lost £137,421
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The history of Lamborghini dates back to 1963 when it was founded by Ferruccio Lamborghini, who originally set up a car and motorcycle repair shop.
Mr Ferruccio also identified the need for tractors in his area and thus began to manufacturer tractors. He set up Lamborghini Trattori S.p.A, which would later become Italy's largest agriculture equipment company. This success allowed Ferruccio, who was an avid car enthusiast, to begun to collect a range of luxury sports cars, including a Ferrari.
However he famously complained about the loud noise that his Ferrari engine made and would refer to it as a tractor noise. When a problem with his Ferrari's clutch arose, he contacted Ferrari and offered his expertise. However Ferrari would tell Ferruccio that he was only a tractor maker and had no clue about sports cars.
Ferruccio would later set up Lamborghini with the aim to compete against Ferrari's dominate role in the luxury sports car market. It did so successfully, in particular in its first decade when it achieved great success.
However the company was devastated by the worldwide economic crisis in 1973. From here until 1998, the company would be sold to four different companies across the world in America, Malaysia and Indonesia, and then to Audi in Germany (as part of the wider Volkswagen Group).
Many in the auto industry credit Audi's work in successfully transforming Lamborghini. However when 2008, it was clear that no automaker would be immune from the impact of the worldwide ecocnoimc crisis.
In 1963, the Lamborghini Miura was introduced which gained the company world-wide recognition. This success was prolonged in 1973 when the LP400 Countach model was intrdouced, which still to this day is a successful model.
In 1974, Lamborghini's tractor business began to experience serious financial difficulties and was later sold to Fiat.
Lamborghini's current portfolio consists of the following successful models: Aventador, Gallardo, Urus, Veneno, Seso Elemento, Tricolore, Spyder,