Retail Price Protection & extra warranty on car??

Cathyandtwins

Hi guys,

We are just buying a new (to us, but a 59 reg) car. The plan is to do 1/2 payment & 1/2 finance plan. The guy was trying to convince my husband to sign up for a Retail Price Protection, saying that if the car was written off then they would make up the shortfall as apparently our insurers (allegedly) wouldn't pay the full amount we paid for it. For example they are saying that if the price paid for the car was £9,000 the insurance company would only pay out £6,000. But for £300 for three years cover they would make up the difference if the car was written off - does this sound like a good idea, or is this a bit of a PPI-like con??

Also, the car comes with a one year warranty, but the suggestion by the finance guy is to MOT the car on the 11th month and that anything that comes up should be paid for on the 'free' warranty. Then the suggestion is to take out a second years warranty for an extra £300. Of course I am assuming that all useful stuff like the brake pads won't be covered, as that is just 'wear & tear' but we haven't seen the small print yet to find out what actually IS covered.

To be fair, the guy is pretty chilled about the whole thing & isn't pushing us into it, but I just wondered what people think about these two issues?

Thanks loads, Cathy :-)

forgotmyname

Insurers pay market. Bit late now but your response should have been ...

"If they value the car at £6000 is it overpriced, Are you overcharging me"

See them wriggle from that. GAP insurance or similar are OK if you stand to lose a lot of value if the cars a total loss. But its like most insurance.
If it doesnt happen you lose.

In your situation paying half the car cash i wouldnt take it. Your choice.


Read all the negative threads on aftermarket car warranties. The paperwork is OK for hamster bedding. 2009 car its 4 years old what do you think will break that wont be put down to wear and tear? Which isnt covered.

Unless its a manufacturers warranty again i would not bother.

Anything that cannot wear out or break is covered. As long as they are not worn or broken of course.

worried_jim

Don't waste your money on either extra products. Put the £600 in a savings account and if something needs repairing, Bingo! You have the funds available. Easy.

Finishrich

I have been looking at this too. Dealer insurance is way more expensive than other options, Google the Which reviews on gap insurance, you'll find alternatives there.

dacouch

Finishrich wrote: »

I have been looking at this too. Dealer insurance is way more expensive than other options, Google the Which reviews on gap insurance, you'll find alternatives there.

http://www.which.co.uk/money/insurance/guides/gap-insurance/vehicle-replacement-gap-insurance-review/

http://www.which.co.uk/money/insurance/guides/gap-insurance/what-is-gap-insurance/

http://www.which.co.uk/money/insurance/guides/gap-insurance/choosing-a-gap-insurance-policy/

http://www.which.co.uk/money/insurance/guides/gap-insurance/return-to-invoice-gap-insurance-review/

maninthestreet

So what make/model is the car, and what is the mileage - this will enable us to determine whether the £9,000 asking price is reasonable or not.

spacey2012

What nobody points out is insurance companies would not offer this insurance if they did not make good money from selling it.
So that means the vast majority of those paying will lose money.
All money saving involves risk.
If you feel the need for gap insurance at least price it from a firm you can trust or even try your own insurers.
Nothing car dealers sell as add ons is worth the paper it is written on and the dealer is after the commision on the product.

victor2

Cathyandtwins wrote: »

Also, the car comes with a one year warranty, but the suggestion by the finance guy is to MOT the car on the 11th month and that anything that comes up should be paid for on the 'free' warranty. Then the suggestion is to take out a second years warranty for an extra £300. Of course I am assuming that all useful stuff like the brake pads won't be covered, as that is just 'wear & tear' but we haven't seen the small print yet to find out what actually IS covered.

That bit can make sense. The new MOT will start from the expiry of the current one (assuming it will have a new one), so no time is lost. It's a slim chance it will fail on something that is covered by the warranty, but nothing to lose.
We did a similar thing with a replacement catalytic converter fitted as the result of an MOT failure. It came with a 2 year warranty. No problem on next MOT. Our friendly (independent) mechanic took it for the following MOT just before the 2 years was up and it failed the emissions test. He got us a replacement cat FOC.