PCP / Write Off / Value offered
dj_uk_1234
Posts: 15 Forumite
in Motoring
Hi guys,
New poster, so be gentle. So, disaster, a couple of weeks ago a vehicle has hit my partners new car.
It's a fairly new Mercedes, bought in September last year which we paid around 25k for. We've done around 5,000 miles since buying, and the vehicle has now been confirmed a write off.
With the PCP, and the money paid so far on the car, she owes a little over 20k. The insurance company have valued the car at £21,000, leaving her with just £700 to be paid out to her.
This is a huge loss for us, means we now can't afford another new car. Solicitors are involved re personal injury etc, but the insurance have been dragging their feet and seem unwilling to help any further. Solicitors say due to the complex nature of the case it could be months and months before anything is paid for personal injury. Is there anything or anyone that can assist or offer any advice for what feels like a substantial loss.
I'll be honest, new to this, never had anything like this happen before and the first time in this situation. Is this the nature of the beast? Do we have to shut up and put up with this. We traded in an Audi A3 with the car to get the price down, and now stuck with no car and only £700 for a new one.
Any advice? Anything else we can do to get things moving? Are we best arguing with the solicitors or the insurers. Literally, any advice would be appreciated.
Many thanks
New poster, so be gentle. So, disaster, a couple of weeks ago a vehicle has hit my partners new car.
It's a fairly new Mercedes, bought in September last year which we paid around 25k for. We've done around 5,000 miles since buying, and the vehicle has now been confirmed a write off.
With the PCP, and the money paid so far on the car, she owes a little over 20k. The insurance company have valued the car at £21,000, leaving her with just £700 to be paid out to her.
This is a huge loss for us, means we now can't afford another new car. Solicitors are involved re personal injury etc, but the insurance have been dragging their feet and seem unwilling to help any further. Solicitors say due to the complex nature of the case it could be months and months before anything is paid for personal injury. Is there anything or anyone that can assist or offer any advice for what feels like a substantial loss.
I'll be honest, new to this, never had anything like this happen before and the first time in this situation. Is this the nature of the beast? Do we have to shut up and put up with this. We traded in an Audi A3 with the car to get the price down, and now stuck with no car and only £700 for a new one.
Any advice? Anything else we can do to get things moving? Are we best arguing with the solicitors or the insurers. Literally, any advice would be appreciated.
Many thanks
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Comments
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You can challenge the valuation, but I'm not sure you will have much joy there - it could be worse, you could be in negative equity - has the finance company given you the settlement figure that the insurers have to pay? Is that what you are working from?0
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Yes, working from that figure. Settled from Mercedes was around £20,300, value was £21000.
We had GAP Insurance as well, but that won't make any difference i believe with the value being more than owed.0 -
dj_uk_1234 wrote: »Yes, working from that figure. Settled from Mercedes was around £20,300, value was £21000.
We had GAP Insurance as well, but that won't make any difference i believe with the value being more than owed.
Surely the GAP insurance is "Return To Invoice"?
Did you get it through Mercedes? Theirs is (almost certainly) RTI?0 -
How much was the new cost of the car when you purchased it?0
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Unsure on the "RTI", not even aware of that to be honest. The value of the car was around £25,000, i think. It was a second hand car but bought through the dealership, as was the GAP Insurance (Mercedes)0
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dj_uk_1234 wrote: »Unsure on the "RTI", not even aware of that to be honest. The value of the car was around £25,000, i think. It was a second hand car but bought through the dealership, as was the GAP Insurance (Mercedes)
I note their website states:
If you have chosen to finance your Mercedes-Benz?
Mercedes-Benz Combined GAP Insurance makes up any shortfall between your motor insurance settlement offer and the original purchase invoice price, or if greater the shortfall between the finance settlement.
What is Mercedes-Benz Lease GAP?
In the event of your vehicle being written off, Mercedes-Benz Lease GAP Insurance is designed to protect you against the risk of any shortfall in your lease agreement. Following the comprehensive motor insurance settlement, Mercedes-Benz Lease GAP Insurance will pay the difference between this and the cost to clear your lease agreement and help you start a new one.
I will have to check which one we have, presumably what their finance team have said it's going to the bottom one (just the cost to clear the lease agreement)0 -
dj_uk_1234 wrote: »I note their website states:
If you have chosen to finance your Mercedes-Benz?
Mercedes-Benz Combined GAP Insurance makes up any shortfall between your motor insurance settlement offer and the original purchase invoice price, or if greater the shortfall between the finance settlement.
What is Mercedes-Benz Lease GAP?
In the event of your vehicle being written off, Mercedes-Benz Lease GAP Insurance is designed to protect you against the risk of any shortfall in your lease agreement. Following the comprehensive motor insurance settlement, Mercedes-Benz Lease GAP Insurance will pay the difference between this and the cost to clear your lease agreement and help you start a new one.
I will have to check which one we have, presumably what their finance team have said it's going to the bottom one (just the cost to clear the lease agreement)
If you have PCP then you have the former - which is good news!0 -
Right, will have a proper look at this, i'm sure it is but i'm doubting my self now. I wasn't involved in the documents side of things and haven't looked, going on what she has said, will post back with confirmation when documents in front of me. Really appreciate this.0
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Right, so, found some paperwork. The header says "Agility Agreement, (Personal Contract Plan).
After looking at the invoice for Mercedes the gap insurance, we paid £399 and it says "RTI Combigned GAP up to £25k"
Have they advised her wrong?0 -
dj_uk_1234 wrote: »Right, so, found some paperwork. The header says "Agility Agreement, (Personal Contract Plan).
After looking at the invoice for Mercedes the gap insurance, we paid £399 and it says "RTI Combigned GAP up to £25k"
Have they advised her wrong?
Ring up the Gap Insurance Provider on the claim number and ask them what it covers, but it should almost certainly cover up to the price you originally paid otherwise it's pretty rubbish.
But remember do not accept any offer from the insurance company before speaking to the GAP insurance or it will not pay out.
Plus for future reference don't buy GAP insurance from the dealership because it is less than half the price online.0
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