HP and GAP insurance - Now a problem with Outstanding Finance

ynwa6

Hi, sorry if this has been covered previously elsewhere. Today, my wife and I visited a VW dealership and made an agreement on HP for a 07 plate golf. The original offer included GAP insurance and some ulholstery/paint protection for £699 and £299 respectively. They verbally reduced these to £300 and £200 before going ahead and printing the invoices etc. The list price of the car was £10450, so in total comes to £10950.
The final invoice lists the car price as £9952, with GAP insurance as £699 and the body protection as £299.
We signed the agreement foolishly without questioning these figures as the sum total is the same and paid a £1000 deposit.
In hindsight and after researching on MSE, I have could to realise these extras are massively overpriced and am also concerned that the GAP insurance (which is RTI) will probably only cover us to the value of £9952 as stated on the invoice.
I am assuming having signed the forms there isn't a great deal I can do, but I have some questions:
- If i wish to cancel the GAP insurance, will this affect my HP agreement?
- If I wish to cancel the agreement completely, will I loose my deposit?
Thankyou in advance.

dacouch

You have 14 days cooling off to cancel the GAP cover, you could buy the same cover for a small fraction of what the garage are charging you

sam1970

i was in the same position two weeks ago....they wanted £399 for GAP insurance and £400 for the special upholestry and paint treatment (car worth £11500)...i agreed and paid £100 deposit but then i did some research and found that GAP insurance should be around £100 for 3 years cover. the upholestry treatment is overpriced..i bought 4 bottles of scotchguard off ebay for £25..one can was more than enough to do the new car and my other car...i told the dealer to cancel both items and there was no problem

Hintza

Not sure if it would work (and you should have queried it at the time) but the invoice is not deal you agreed to.

ynwa6

Thankyou for your comments, I will definately be cancelling the GAP insurance and Glim cover. Just googled scotchgard and it seems to be virtually the same thing!
I know that the salesmen are doing their job and raising the commision by selling extras with the car but it leaves a real sour taste when you come to realise you have been misled. But as this is the first car we have bought we will put it down to experience, next time i will search this forum first and go in armed with some serious knowledge!

dacouch

Hans1983 the other issue with buying these covers from the dealer is apart from being expensive they add the covers to your finance so over three years with interest the £1000 they charge you will cost more like £1500 with interest. If you buy them yourself at a much lower price you can pay them in one go and avoid the interest on them

ynwa6

Further to earlier posts, we have spoken to the dealership to cancel the GAP insurance and Glim cover which they agreed to and said they would email us with an updated invoice. The invoice they have sent is as previous, except they have increased the APR for the finance agreement. Can they do this? I was under the impression the HP agreement and insurance were separate products.

dacouch

They should be seperate products, if your not happy tell them where they can shove their VW

ynwa6

I am very tempted to tell them to shove it, however do we lose our deposit or part of it if we pull out now?

dacouch

The deposit part is not my field of expertise, but it would come down to contract law.

Have a read of the contract and see what it says about either side pulling out, there may be a section in there allowing you out without penalty if the dealer revises the deal.

Hopefully someone will come along who does know more than me on contracts.

How much deposit have you put down?

ynwa6

£1000. I have read the contract and it states that to cancel we have to forfeit the deposit.