Finance people... GAP insurance

[Jimboy2]

Were you offered it? Did you take it? Is it worth it?

1st time in a very long time I'm buying a car on finance. So want to make sure I'm covered.

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[marks]

Were you offered it? Did you take it? Is it worth it?

1st time in a very long time I'm buying a car on finance. So want to make sure I'm covered.

Worth it if you're likely to write the car off.

 

[vikz55]

Absolutely essential IMO. Especially in finance - written off or stolen, you'll be well out of pocket. But absolutely do not buy from the stealer.
I have used ALA on my current car. Frank Pickles is another recommended one.
Using a third party saves you well over 50% on dealer prices and you can get other cover like dent/scuff/alloy cover too alongside if needed

 

[Nostruss]

Absolutely essential IMO. Especially in finance - written off or stolen, you'll be well out of pocket. But absolutely do not buy from the stealer.
I have used ALA on my current car. Frank Pickles is another recommended one.
Using a third party saves you well over 50% on dealer prices and you can get other cover like dent/scuff/alloy cover too alongside if needed

Agreed - I don't normally buy new cars either. I bought for around £200 online for 3 years. You can buy at any time. Dealer cost was double - comparable cover. Piece of mind in case the car is stolen or written off. Does not cover cost of modifications. The low price reflects the low probability of making a claim and seemed like good value to me.

 

[GR11M]

Yes
No
No, only 30% was taken on finance and they wanted £500 for the GAP insurance

 

[Jimboy2]

Agreed - I don't normally buy new cars either. I bought for around £200 online for 3 years. You can buy at any time. Dealer cost was double - comparable cover. Piece of mind in case the car is stolen or written off. Does not cover cost of modifications. The low price reflects the low probability of making a claim and seemed like good value to me.

Ah good to know it can be bought at any time. My account will be wiped on payment day as I want to try and do Max deposit.
Will definitely get the gap insurance now I have read a bit more. And will get 3rd party.

Cheers! :cheers:

 

[vikz55]

Ah good to know it can be bought at any time. My account will be wiped on payment day as I want to try and do Max deposit.
Will definitely get the gap insurance now I have read a bit more. And will get 3rd party.

Cheers! :cheers:

I thought you had to purchase within 180 days. May be mistaken though

 

[Kristian87]

I was offered it, declined. There was definitely a time limit on taking it though.

I always tend to turn down these extra insurance policy things anyway. Same with excess on my insurance - if I don't have an accident then it's money lost right? Happy to take the risk personally.

Maybe I just like to live dangerously ;)

 

[Jimboy2]

180 days is fine. 30 days is fine to be honest. Won't be getting it from the dealer that's for sure

 

[vikz55]

I was offered it, declined. There was definitely a time limit on taking it though.

I always tend to turn down these extra insurance policy things anyway. Same with excess on my insurance - if I don't have an accident then it's money lost right? Happy to take the risk personally.

Maybe I just like to live dangerously ;)

Not just accidents to think about (even though there's probably a higher than usual chance given the nature of the car), also need to think about the fact that the Mustang is a rare car in the UK. Would put it square in the sights of car thieves and good for nothing teenagers. Not to mention the oxygen thieves that may seek to maliciously damage your pride and joy. (do I sound a tad cynical?!?)

 

[Nostruss]

Sorry, yes there is a time limit - 365 days with the one I took. If you need longer than that - you're not going to take it out anyway

 

[SteveS]

And obviously you're not protected til you take it out so the sooner the better...if you intend to.

 

[Stark]

Check your car insurance before you take out gap insurance. Some insurance companies offer this cover as standard when buying a new car so no need for extra gap insurance on top. You can then buy gap insurance within 180 days (123gapinsurance for example) of buying the vehicle and defer it until the 1st anniversary of the day you bought the car and for the amount of years from that point onwards you want cover. I know this because I have done this with my insurance company and will be doing the gap before the 180 days is up.

 

[WHealy]

Ah good to know it can be bought at any time. My account will be wiped on payment day as I want to try and do Max deposit.
Will definitely get the gap insurance now I have read a bit more. And will get 3rd party.

Cheers! :cheers:

So my examples are from the US, but I wanted to share.

Scenario 1
40k price with 7 k down


Scenario 2
40k pric with 1k down


6 months later there is a total loss and say vehicle is worth 30K

Scenario 1
Say your payoff is 31k. You walk away owing nothing, but you loose your 7k down and all payments.

Scenario 2
Say your payoff is 37k. You walk away owning nothing, all you loose is the 1K and payments.


Now the payments in Scenario 2 are higher, but GAP covers you better. Just trying to share (at least here in the US). The more you put down, the more YOU risk and the less GAP covers. They kind of take your money first then add there's only when yours runs out. Just cautioning you on large down payment from a rish perspective. You already know it lowers payment amounts.

Hope that helps.

 

[naughts4187]

I used to sell cars a long time ago, Audi actually and on any PCP the max we would recommend as a deposit would be 10% for that reason, plus you're ploughing too much equity into the car which you may not get back over your term.


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