New Hyundai i20 questions

percypercy

Hello everyone,

Last week I bought a new Hyundai i20 thanks to the scrappage scheme. It has cost me £6350 and will get delivered in 2-3 weeks, all being well.

As I have never bought a new car before I've got a couple of questions to ask. I hope someone can help me.

1) The salesman tried to sell me a couple of things on top of the car and I said I'd go away and think about it. Firstly, there was a product called Glasscoat, which protects the exterior of your car for £199. £299 for interior and exterior. Any good? Worth getting? My initial thought is no but please enlighten me.

Secondly, a financial product called Extra Value Vehicle Replacement GAP, run by the AA. This would be £399 and guarantees the full price of your car, in case of a total loss, for 3 years. This seems more interesting, especially as I have only paid £6350 for the car yet the GAP scheme covers the full cost of the car ie it doesn't take into account the 2 grand discount. Anyone used or have any thoughts about this product?

2) My second question is this - can anyone make a guess at how much the car is going to depreciate in value? I ask because I might be moving abroad in 2-3 years so it would be good to know roughly how much it'll be worth then. I'm paying with two 0% credit cards and so I need to know how much to pay off per month to keep me ahead of the game for a couple of years and then I plan to sell.

Thanks for taking the time to read my post and I hope some of you experts can give me a few answers.

oh_no_5

1) No,it's a complete waste of money at best and a con at worst.

1a) Gap insurance can be a very good idea but can be bought online for £90 for 3 years cover.

2)Your i20 will be worth about 30% of the new price after 3 years.

DomTom

30%!!! after 3 years, seriously?

Tallymanjohn

Depreciation values vary incredibly - for example, a 3 year old Mini will lose about 35% (which is about the best), whereas a 3-year old Freelander will lose around 70%!. Small cars tend to do better than large cars, but it really depends on how sought after they are - the Hyundai Getz has held its value fairly well, mainly because it's a small car that gets good write-ups & is still popular. As the i10 is a newish model, you just have to hope that it doesn't get any unfavourable press and you can probably look at getting 50%+ for it. If you want confirmation of these figures do a quick google fo 'car depreciation', it's a well discussed subject.

harveybobbles

Maybe you should point out to the salesman that he will be breaking the rules of the FSA by selling you a product that runs for 3 years if you don't intend keeping the car for 3 years...

also I assume you bought the car on finace if they are trying to sell you GAP insurance?

roddydogs

i20, not i10

AdrianHi

Get a decent sealant and put it on yourself as soon as you pick up the car and forget the expensive treatments the dealer will sell you.

Full "return to invoice" insurance might be worth it (not just the type of GAP that covers shortfall between outstanding finance and car value), as said buy online somewhere like gap4less. Bear in mind most inruance policies pay back original invoice value in the first year anyway.

What Car is forecasting your car to retain 50% of it's original list price at trade in 3 years old 36,000 miles. However, the existance of the scrappage scheme may be a cause of the actual deprecation being higher come trade in time because there will be cars entering the market sold at effectively a £2000 discount.
The bigger Hyundais only retain around the 33% to 36% mark, but you can never count on this, depends on market conditions come trade in time.

vikingaero

If you wash your car every week and polish it once a month or two then you don't need the Glasscoat. All these protectants are snake oils.

Gap insurance can be bought cheaply online - Google "Gap Insurance". It costs roughly half to 2/3rds of the cost of the dealer.

hardpressed

I'm puzzled, why do you need GAP insurance, if your car has comprehensive insurance wouldn't that pay out if it was a write off? Or am I missing something?

almillar

Comprehensive insurance will pay out when you write off your 3 year old car. They'll pay you what the 3 yr old car is worth, so you can go buy another 3 yr old car.
Adding the GAP insurance means you'll be paid the NEW value of your 3 yr old car, so you can buy a new one.
hardpressed, and probably a lot of other motorists, have probably been overpaying on their car insurance for years. When you get a quote and are asked for the car's value, this should (for the vast majority) be going down each year. The higher the value you enter, the more your insurance will cost.

AdrianHi

almillar wrote: »

The higher the value you enter, the more your insurance will cost.

There are certain value points for this, for most insureres the first car value point at which a higher premium becomes payable due to cars value is £30,000. So car values between £1 and £29,999 are going to have the same effect on premium.