HELP!! Car finance with Gap No Payout!!!

jungle7895

Ok here goes any help on this would be most welcomed......

I baught a car around a year ago apx £9000 this was mainly on finance £1000 cash was put down, after a month or so they gave me a phone call and i decided to add on the GAP insurance, good product in my opinion.

Soo.. now owing roughly £6500 about a year later earlyer this month the car was fully written off no other party involved.

Have just heard that due to the car being an imported vehicle and was orig insured as a uk model the insurance goes down to 3rd party only so they will not be paying out have seeked legal advise and they went thru the contract and there is no way around it should of been insured as a imported car at first.
These silly rules are due to it being a motor trade policy.

I have yet to contact the finance company will the gap insurance be of any help??

Could i tell the finance company, that the insurance paid out direct to myself try and get together say £2000 and say that thats what the insurance company paid out to me and then pay this on to the finance and use the GAP To settle the total????

Also what are the implications of not paying the finance as there really is no car to reposess??

Any Help is there anything i can do Pls????

LinasPilibaitisisbatman

jungle7895 wrote: »

Ok here goes any help on this would be most welcomed......

I baught a car around a year ago apx £9000 this was mainly on finance £1000 cash was put down, after a month or so they gave me a phone call and i decided to add on the GAP insurance, good product in my opinion.

Soo.. now owing roughly £6500 about a year later earlyer this month the car was fully written off no other party involved.

Have just heard that due to the car being an imported vehicle and was orig insured as a uk model the insurance goes down to 3rd party only so they will not be paying out have seeked legal advise and they went thru the contract and there is no way around it should of been insured as a imported car at first.
These silly rules are due to it being a motor trade policy.

I have yet to contact the finance company will the gap insurance be of any help??

Could i tell the finance company, that the insurance paid out direct to myself try and get together say £2000 and say that thats what the insurance company paid out to me and then pay this on to the finance and use the GAP To settle the total????

Also what are the implications of not paying the finance as there really is no car to reposess??

Any Help is there anything i can do Pls????

1) There are no silly rules. You didnt insure you're car properly and got caught out.

2) what you are proposing would be fraud, and apart from that they would want proof before they pay out, I also would imagine the GAP insurance has terms to avoid paying out when no valid insurance is held

3) There will be defaults put against you and court action could be taken.

I suppose you could appeal the insurers decision based on the grounds that even had they known it was an import they would have still insured it and thus they should pay out subtracting the additional premium you would have owed. I suggest you get onto the insurers and if you have followed the complaints procedure in full ask for a letter confirming this so you can pursue an ombudsman complaint.

dacouch

I suspect there will be an exclusion on the Gap Policy excluding cover if you have a Motor Trade Policy as they pay claims on the Trade Value and not the Market Value.

Which Insurer is the Gap Cover with?

Which delighful Insurer is your Motor Trade Insurance with?

jungle7895

Ok spoke to insurance have asked for a letter explaining why they won pay out then can look at that further. (But its not looking good as it was my fault)
The Gap insurance is via Close motor finance,
Now heres my next problem........
So i have this car that is quite "mashed up" sitting in my friends barn as the insurance decided to deliver it back (free of charge) with even more damage as it had been sitting in there yard and filled up with water and what looks like damage from there forklift truck.
I have also now become unemployed (iv been credit cruched) going to see CAB regarding some debts and see what i can do next week, and have discussed going bankrupt. and am now in the position where i cant pay this car finance.

So....
Do I keep the mashed up car for now see if i can make some cash ebaying off some of the spare parts ie engine, gearbox, mirrors, boot then just get the rest picked up by the scrap man.

Do I just get it scrapped and say i had no way of keeping the car so had to be scrapped.

Do i keep it as it is so there is something that they can reposess if it gets that far.

What are the implications of having a (in effect) written off car on finance when the insurance will not pay out....??

As you can imagin things are bad at the moment any help pls guys..............

LinasPilibaitisisbatman

If you are going bankrupt do nothing with the car at all.

It counts as an asset and liability and any action taken by you prior to bankcruptcy could be seen as prejudicial and create problems.

Hold off and if you go into bankruptcy ask your insolvency advisor their opinion.

mattymoo

One thing I cannot quite grasp is how you have lost your job yet have a motor trade policy? Did you have a business in the motor trade that has failed or were you an employee of a motor trader? If the latter, why are you insuring your own car on their policy? If the former, was the vehicle bought through the business and so an assett (or whats left of it) of the business?

gap-insurance

My opinion for what its worth.

Don't dispose of the car as should the insurance company relent you will have in effect disposed of their property as title will pass to them.

I rather think you have no chance at all with the GAP insurance and in any event they will speak to the motor insurers before doing anything.

GAP only pays out in the event of a total loss with a fully comp policy and if your's is in effect now a third party the GAP can not pay out.

Good look.