have i been misold gap insurance

cv65user

Just bought a car from jct600 on auto trader it said 17k .so i put depost down . On the day of I went to collect it , they produced an invoice for 17k but 225 of it if i am reading it right says for gap insurance

so I immediately said I dont want this as I never asked for it. Sales response was "its included free in the price" . But invoice is listed as £225 ? and just swiped my card.

so was the price of my car really 16775 + 225 ,
on auto trader and invoice it does say 17,000?

so could I have bought the car at 16775 ? and would this be mis selling?

I am also retired so would this invalid the gap insurance?
i have paid for the car fully via debit

cv65user

i just read another persons post i am now confused. gap insur protects against the difference insurers pay out and the outstanding remaining loan only?

but i have paid this car off in full by debit card so does that mean gap insurance is useless to me because i have no outstanding finance on it?

dunstonh

Without finance you should not have gap insurance.

If a product is included in the price automatically then you should have "nil" as the amount allocated to it. If the invoice shows an actual price being made for it and the insurance is not necessary then it is a mis-sale.

picky123

If a vehicle is written off, GAP will pay the difference between the amount the insurance company pay for your vehicle, and the original purchase price. If the car was 1 year old when you bought it, and you w/off the car in 2 years time, your insurers will give you the value of a three year old car, the GAP would allow you to buy another 1 year old car. It is a good product, with no exclusions, but it is very naugty to sell it how they have, it is a regulated product, and must be fully explained.

picky123

dunstonh wrote: »

Without finance you should not have gap insurance.

Sorry, that is not correct, gets you back to purchase price. Vey helpful to have when you have finance though, as otherwise you end up paying 2 agreements.

Tiddlywinks

You questioned it at the time - you then still went ahead with the purchase - if you weren't happy, you should have walked away.

Gap insurance pays the difference between insurance settlement and invoice price for a set number of years... actually very useful if you do have a 'write off'.

cv65user

to confirm its not brand new , its 2009 plate

i dont have any pcp or hp or finance agasints it . all paid cash up front.

i already paid deposit last week , was gong to pay off balance and collect car so couldnt walk away really although i questioned it . the sales re assures me i have not been charged for it and said its free

its been a very long wait , its a rare car c350 cgi petrol with amg pack

CB1878

Hi, there are a few different types of 'Gap Insurance', and basically all of them are being described on here. The three basic types are:

Finance Gap : to cover between the vehicle market value and the outstanding finance settlement on a lease or hire purchase agreement (ie not suitable for 'cash' purchases)

Return to Invoice : To cover between the vehicle market value and the original invoice price you paid. This can be used for cash or finance purchases, and is usually the 'Gap Insurance' that a dealer would offer.

Vehicle Replacement Insurance : to cover between the vehicle market value and the cost of the equivalent vehicle as a replacement. The key is that the 'equivalent' vehicle, in this case would be another 4 year old, same specification and mileage as the C350 that you originally purchased. Suitable for cash or finance deals.

You need to see what type of 'Gap Insurance' you have.

As for you being retired, this would not mean your Gap Insurance is invalid.

The issue hear seems to be that the policy seems to have been included without your knowledge. To say it is 'free' is rubbish, because in effect you are paying 16775 for the vehicle and 225 for the Gap, If the policy is a Return to Invoice, as would be normal from a dealer, your vehicle invoice is 16775 and not 17000, so your cover would be reduced. They may have 'included it in the price' by giving you an equivalent discount on the car, but this is not free at all.

Gap Insurance is never 'free' as it will cost the dealer, and the finance manager may try to slip this in to keep his figures up. You will have a 'cooling off' period for this type of insurance, if you are still within this then demand a full refund, and you will have only paid 16775 for the car. The dealer will have blown £225 for trying to be sneaky, which is sad because this type of 'selling' was meant to be clamped down on by the FSA (now FCA).

roonaldo

Gap insurance can be mis-sold. I think what would be relevent in your case is if the cancellation rights were disclosed and that you wont get a refund. Have you checked this?