GAP Insurance for new car - do I need it?

movingforward2010

Jakg wrote: »

4.000 miles a year and your buying a new car?!

i was gonna say this, but i realised it only because im jealous:p

BJV

scottishsue wrote: »

I have just purchased a ex demo BMW 1series. Not happy as I am a cash buyer and they cant make me take a hp/lease agreement so they are pushing me to take out GAP insurance. I dont think I need it - maybe I shouldnt speak to soon - as I do very little driving - local roads. do about 4,000 miles a year and so far have not had an accident in about 10 years. What do other money savers think about this insurance. Also as a moneysaver it aint cheap its about £600!!

There are many different types of gap insurance and your dealership will have most likely offered you a form of gap insurance called combination return to invoice gap insurance.

This type of gap insurance would pay the difference between your cars valuation when it is written off and either the amount needed to clear the finance or in your case the difference to take you back to the invoice price your paid.

Every car looses money some quicker than others if you think of gap insurance as simply in your case protecting you against the amount of money your car de-values you will not go wrong.

You also do not have to buy from the dealership. In fact if you buy gap insurance directly from the garage they have to charge you the equ of insurance VAT called IPT at a higher rate and this can affect the price they pass on to you.

Instead simply type gap insurance into Google and try a couple of quotes. You will be amazed most are just a fraction of the cost.

But just remember that gap insurance is not a legal requirement in the UK and no-one can tell you otherwise. Insurance has to be your choice.

Good luck !

vax2002

Most car insurance companies will give you a quote on top of you normal insurance, but how have you managed without it so far.
The dealers will be on 30% commission to a broker who will most likely take another 30%, They are not concerned for you car in the slightest, the salesman wants his cut to bump his wage.
If you are not taking finance as well you should be able to negotiate at least 5% of screen price, but only if you make out you are not that bothered and willing to shop around if they dont.

whatmichaelsays

As a rule, don't buy "dealer" extras (GAP, interior protection, Auto Glym, etc). The mark-ups on such products are huge because they know that they have a captive audience that is already in the buying mindset. It's the same reason by Dixons stock £90 HDMI cables.

I recently purchased a brand new SEAT Ibiza with cash from JCT600, who wanted circa £350 for L4L GAP Insurance. An equivalent policy was available through a partner of Auto Trader for £76 - and it wouldn't surprise me if the underwriters for both policies was the same.