Help with GAP Payment on Car?

continualdiamond

crumlie wrote: »

can any1 define for me wot the invoice price is?

Is it;

1) The purchase price of the car only

or

2) Total amount payable which includes finance?

Return to invoice: Pays the difference between motor insurance payout and the original purchase invoice price.

Finance gap: Pays the difference between motor insurance payout and what you owe your finance provider

dacouch

continualdiamond wrote: »

The best form of gap insurance is shortfall gap, covers the shortfall between what your car insurance pays out and the rest left that you owe the finance company.

Also makes sure your car insurance is fully comp, your the registered keeper and that you financed the car puchase.

I have been looking into gap insurance as pick up my car tomorrow and i always finance them, with my OH being the registered keeper and policy holder insurance wise. Now i was all set to get gap insurance through my finance company who never asked if i was going to be the registered keeper and had i of gone through them we would of put my OH down as the registered keeper tomorrow but then that would of made the gap insurance void.

So luckily i opted not to have that through my finance company and am purchasing it seperately elsewhere. Also they have conditions of the age of a car and how many miles it has done when you purchase it. The ones i have been looking at online with having read the conditions before buying most have stated a cooling off period, ie 14 days to cancel with a full refund given.

You must be confused as the type of GAP cover you are refering to is the WORST type of GAP cover. If you want the best type of GAP cover you should go for "Return To Invoice" (RTI) or preferably "Vehicle Replacement Insurance" (VTI).

I would not recommend the shortfall type of gap you are describing as it only clears the outstanding finance (Up to a certain limit)

continualdiamond

Why is it the worst? When i asked my finance company if i could purchase gap insurance elsewhere i was told yes and the told the best is shortfall gap.

I am not on about brand new car purchase, the car i collect tomorrow is second hand, 04 reg and cost £3995. I am on a very high APR so therefore thought shortfall was better for me as i am paying quiet a lot in interest.

dacouch

Shortfall will pay the difference between what you receive from the car insurers and what you owe the finance. That is it you will owe nothing in finance but have no car.

RTI will pay the difference between what you receive from the car insurers, clear the finance off and any difference between these figures and what the original invoice price of the car you get back. So you owe nothing but will generally have some extra money to pt towards another car.

QED

continualdiamond

dacouch wrote: »

Shortfall will pay the difference between what you receive from the car insurers and what you owe the finance. That is it you will owe nothing in finance but have no car.

RTI will pay the difference between what you receive from the car insurers, clear the finance off and any difference between these figures and what the original invoice price of the car you get back. So you owe nothing but will generally have some extra money to pt towards another car.

QED

But with RTI aren't you purely just hoping that you get enough money to pay the finance off? As with myself having a high APR thats a big risk to take as i would imagine if a car is written off and therefore you have to settle finance a settlement figured is then added on, depending how long you're into the agreement. So thats an extra cost to take into account not just the amount you owe had you been able to continue paying the car off each month.

Whilst yes some money to put towards another car purchase through a RTI would be nice, i feel it would be much more relaxing to know your finance is going to be settled with the shortfall (finance gap).

As a companies website states with RTI:

The RTI policy is specifically designed to ensure you receive the shortfall from the invoice purchase price of the vehicle in the event of a total loss and will not take into account your finance agreement. Settlement of any claim will be in the form of a payment made directly to the policy holder leaving you with the option of how to use the money.

(apologises OP for hijacking your thread)

dacouch

Whats the purchase price of your car, what are the monthly repayments and for how long

continualdiamond

£3995 - purchase price
£188.70 a mth over 3 years - thats with a warranty added on

Told you its a lot, my APR is very very very high.