Does GAP insurance?

jon1804

Hiya,

Im hoping for a bit of advice about gap insurance.

I have recently bought an 09 Clio GT, part of the deal with the dealership meant me trading in a car which I had bought 10 weeks ago :-/. This left me with negative equity on the previous car which the dealership rolled onto the new car, increasing the cost of the new car by about £1500.

So my question is - If I buy GAP insurance will it cover the total amount of the deal (i.e. including the negavtive equity the rolled onto new car) or will it only cover the cost of the car?

I hope my ravings make sense to someone who is able to offer some assitance

Thanks in advance for any help you can offer.

P.S. The dealership has offered me the GAP insurance for £350

BJV

jon1804 wrote: »

Hiya,

Im hoping for a bit of advice about gap insurance.

I have recently bought an 09 Clio GT, part of the deal with the dealership meant me trading in a car which I had bought 10 weeks ago :-/. This left me with negative equity on the previous car which the dealership rolled onto the new car, increasing the cost of the new car by about £1500.

So my question is - If I buy GAP insurance will it cover the total amount of the deal (i.e. including the negavtive equity the rolled onto new car) or will it only cover the cost of the car?

I hope my ravings make sense to someone who is able to offer some assitance

Thanks in advance for any help you can offer.

P.S. The dealership has offered me the GAP insurance for £350

Ok couple of things is the negative equity financed by hire purchase / auto loan or a bank loan. ( sorry to ask but this is really important.)

In 99.9 % of cases a standard form of gap insurance will not cover any negative equity but it will depend on how they have represented the figures, Again sorry to ask but depending upon how your dealership has shown the negative equity will make all the difference.

e.g Did they put cost of £5,000
less part exchange £3,000
Settlement £4500

Total financed £6500

or did they just increase the cost of the car?

Please let me know and I will try to help.

jon1804

Sorry about the delay in posting the info, I have been mad busy and forgot all about it till lastnight when someone called me up offering me GAP insurance lol.

I will type out exactly what the invoice says -

Used Vehicle Basic Price - £7524.00
Fuel - £16.67

Sub Total - - £7540.67
Road Fund Licence - £93.50

Total Price - £7637.50
Part Exchange - £4100.00
Balance Outstanding(hp or Other) - £5878.77

Sub Total - £9414.27
Deposit -£1000.00
Finance - £8416.27

It is on a Hire Purchase agreement with Black Horse.

Thanks again for any help

forgotmyname

From that i would say its not covered.

If they had inflated the purchase price of the new car you may have been in with a chance.

hollie.weimeraner

There are a number of GAP policy's but I would suggest that non of them would cover you in respect of an inflated car price.

The other thing I would reccomend would be to get your GAP cover elsewhere (£350 is extortionate!).

I have used www.ala.co.uk previously and found them very helpful.

jon1804

I dunno what to do lol. They called back and quoted me £298 for cover for 3 yrs for a thing called back to invoice :-/ I asked if it would cover any neg equity and she said yes.
I have also tried the site Hollie mentions and they do a thing called back to invoice+ and it quotes me £79 for 3yrs cover lol.
OMG why does it have to be such a minefield, I just want peace of mind with cover that will pay out if required lol

forgotmyname

I wouldnt pay for it over the phone until after they confirmed that in writing.

I cant see them paying the negative equity from a previous loan.


Back to invoice to me would be the invoice for the price of the car your buying.

The + maybe things like they are charging you for fuel?? Did you not haggle that into the deal?
Paying for fuel? I would have said if it doesnt have PLENTY of fuel then wont it look bad for you if i break down outside your premises and tell all the passers by that i just bought it from you?

jon1804

I thought back to invoice meant they would pay the shortfall between my insurance payout and the invoice cost of the car :-/

AbbieCadabra

i've used car2cover twice now. their website info is pretty clear & the cover is a little more extensive than others out there. we've currently got £25k cover, return to invoice, over 4 years - cost £200.