Car Finance query

Bailey73

I have recently taken out some car finance and at present I am reading through all the paperwork, whilst looking through I have noticed that there appears to be a difference in what was quoted over the phone and what is on the paperwork.

Over the phone I was told my monthly instalments would be £157.28 without GAP insurance and £158.27 with GAP insurance, now as it was only an extra £1.00 a month I opted to go with the GAP insurance.. however, my paperwork shows that if I didn't have the GAP insurance then my payments would only be £132.04 so they are really charging me £26.23 per month for the insurance.

I have signed the paperwork but missed this the first time around but I do know I have 14 days to cancel the finance agreement, we would like to buy the car and would be happy with the £132.04 per month but feel they have advised us badly regarding the GAP Insurance and would wish to cancel this.

Can we just cancel the GAP insurance but still keep the finance agreement or would we need to cancel it all?

Your thoughts or suggestions would be greatly appreciated. Thanks

Apples2

If I was over £36k in debt I would cancel the whole lot, buy a cheap runabout and use £158.20 per Month trying to reduce my debt instead of wasting it on something I can't afford.

Bailey73

Apples2 wrote: »

If I was over £36k in debt I would cancel the whole lot, buy a cheap runabout and use £158.20 per Month trying to reduce my debt instead of wasting it on something I can't afford.

If you look carefully my signature has not been updated in nearly 3 years and my debt has reduced considerably since then, infact I am well under £5,000 of which I am making over payments on.

I can afford the repayments and the vehicle that I am purchasing is a cheap runabout for my wife.. I am not asking for advice on affordability etc but as to whether the GAP Insurance has been misold.

CHR15

Do you not want GAP Insurance??

You may have a point but I can't see the issue, you were happy with paying £158 for the car including GAP Insurance, does it matter how it is divided up??

If you are still in the cooling period, I think you should cancel the whole lot, you don't seem happy with the deal

Bailey73

I may have been happy to pay £158 a month but now that I have seen the paperwork where it states without GAP my payments would only be £132 I would rather save the money.

According to the paperwork they are charging me £26 a month for the insurance and not £1.00 a month like they quoted over the phone.

I feel that they have quoted it to make the GAP insurance sound lower than it really is.. at £26 a month that is just too much and I could actually put that aside to clear the loan quicker

CHR15

It's a requirement under many car finance deals that GAP must be present. GAP is a good thing as it protects you if you write the car off.

The chances if your insurance paying out anywhere near the amount you owe the finance company is somewhere less than zero.