GAP insurance problem with new car - Advice please

Rob_07

Hi,
I purchased a new vauxhall corsa on the 11/09/09, obviously I was offered the GAP insurance from GMAC (For if i wrote the car off in 1st 3 years) but i told the dealership that i could get it cheaper online, when i went to the dealership for the handover the finance manager for the dealership came out to speak to me and said that he would do the top level cover for £239 rather than £399 as advertised which was cheaper than click4gap.com so i naturally said yes, he also offered to do it for 10 months interest free via direct debit, a few weeks later the policy documents still hadn't arrived so i contacted the dealership only to be told that I shouldn't of been offered the price quoted or the interest free payments as it is below cost for the dealership and the interest free payments is costing them around £40, however they said that they would honour the price and interest free payments, and was assured that they were sorting it out behind the scences so to speak to push it through with their GMAC rep, fast forward to today and I still haven't received the policy documents so I rung GMAC directly who told me that no policy exists for my car, so I immediately contacted the dealership who are now having to fill in a late registration form to start the policy, but have been again reassured by the dealership that from there end they can see that the policy is in place and active, this has now been going on for weeks and i shouldn't have to be worrying about it.

If i were to write my car off for instance between now and the policy documents coming through technically i wouldn't be covered for the gap element as GMAC are saying no policy is in place.

What action should i take - do i push for some form of compensation from the dealership for all of the running about that i have had to do, stress, phone calls, travelling to dealership etc. Your advice would be greatly appreciated

I have also taken legal advice today and have been told that I may be able to bring a civil case against the dealership in the small claims court for breach of contract in the event of me writing the car off and it transpiring that no cover is in place.

It is now nearing the end of october, i picked the car up on the 11th September 09, I have been left with what was a relatively positive car buying experience into a really negative one.

Sorry for the long post!

Thanks in advance
Rob

mcjordi

cancel the cover with GMAC the dealer will make money on the gap cover

buy it online

Ian_W

mcjordi wrote:

cancel the cover with GMAC the dealer will make money on the gap cover
buy it online

Which bit of this didn't you understand?

and said that he would do the top level cover for £239 rather than £399 as advertised which was cheaper than click4gap.com so i naturally said yes, he also offered to do it for 10 months interest free via direct debit,

Do you have anything in writing about this, for example has the DD been set-up?

Whether you have or not, write to the Garage General Manager summarising the above in the form of a complaint. Point out that insurance products are regulated by the FSA and that if they don't honour the deal you will complain to the Regulator. Also inform them that you will contact your local Trading Standards about their conduct.

Whether you claim/get compensation is a secondary issue, the first is to get the GAP at the price they offered if it really is cheaper than you can get elsewhere.

BTW, there isn't any need to stress about it too much. If by "new" Corsa you mean 1st owner Brand new, as I take it to mean most motor policies offer to replace a new car written off in the 1st 12 months - so check out your own insurance. GAP only comes into play after year 1 for most new cars.

Rob_07

Ian_W wrote: »

Which bit of this didn't you understand?Do you have anything in writing about this, for example has the DD been set-up?

Whether you have or not, write to the Garage General Manager summarising the above in the form of a complaint. Point out that insurance products are regulated by the FSA and that if they don't honour the deal you will complain to the Regulator. Also inform them that you will contact your local Trading Standards about their conduct.

Whether you claim/get compensation is a secondary issue, the first is to get the GAP at the price they offered if it really is cheaper than you can get elsewhere.

BTW, there isn't any need to stress about it too much. If by "new" Corsa you mean 1st owner Brand new, as I take it to mean most motor policies offer to replace a new car written off in the 1st 12 months - so check out your own insurance. GAP only comes into play after year 1 for most new cars.

Thanks for your comments, the direct debit hasn't been set up yet as this is done by GMAC but as they haven't set the policy up they haven't yet done this, however i have got the application form for the direct debit which shows the amended price of £239 and the 10 interest free payments of £23.90.

When i went into the dealership before i spoke to the sales manager who told me straight about the fact that i shouldn't have been offered the gap for the price that i have or the interest free payments and i was told that the finance manager who offered it has only been at the dealership for 2 weeks when he offered it to me and that in total it is costing the dealership around £130 to put right as well as loosing the commission on the policy, due to the price been sold for.

And your right I got the years free insurance with my new car and it does cover the 1st year in terms of being written off so no real need to worry about not been covered.

I am going to send a letter recorded delivery to make the complaint more formal

Thanks
Rob